What's happening with Biden's Chip Law beneficiary Micron Tech stock on Tuesday?
Shares of Micron Technology, Inc. (NASDAQ:MU) are falling after the company raised its 2024 capital spending forecast on Tuesday.
The primary beneficiary of the $280 billion U.S. CHIPS Act now expects capital expenditures of $8 billion in fiscal year 2024, higher than its prior expectations of $7.5 billion.
Micron is a leading provider of high-bandwidth memory (HBM) chips, a critical component of the hardware used in artificial intelligence servers. Nvidia Corp's (NASDAQ: NVDA) H200 chip leverages Micron's advanced HBM3E.
Also read: Micron's $6.1 billion Chip Act funding drives major expansion in the US
“We expect HBM to become a multi-billion dollar business for us in 2025,” COO Manish Bhatia said at JPMorgan's Technology, Media and Communications Conference, Reuters reported.
Micron expects more than 50% of PCs will be AI-enabled by 2027.
Micron also announced a strategic expansion of its talent development efforts to diversify its semiconductor workforce and build a robust talent pipeline through education and career re-entry initiatives.
Micron is partnering with GlobalFoundries Inc (NASDAQ:GFS), the National Science Foundation (NSF), and additional leaders in industry, government, and education to enhance access to opportunity and meet the growing demand for semiconductor talent in the United States. I made use of it.
Analysts had expected Micron to pick up from the HBM market moat. We also saw positive news from rising DRAM prices, shipments of high-priced, high-margin products, and increased exposure to AI.
Micron stock is up 94% in the past 12 months. Investors can gain exposure to equities through the Invesco Semiconductors ETF (NYSE:PSI) and the REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI).
Price Action: MU stock was trading 0.60% lower at $128.21 at last check on Tuesday.
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