Here’s why Micron Technology Inc. (NASDAQ:MU) is soaring

On January 7, 2025By Littum

We have recently compiled a list of Investor optimism boosts the jump of these 10 stocks. In this article, we will take a look at where Micron Technology Inc. (NASDAQ:MU) faces the other stocks.

Wall Street’s main indexes ended Monday’s trading session on a mixed note, with the Dow Jones Industrial Average the only decliner as it fell 0.06 percent, or 25.57 points, to close at 42,706.56.

In contrast, both the S&P 500 and Nasdaq Composite posted gains, up 0.45 percent and 1.24 percent, respectively.

Monday’s overall rally was mainly driven by strong performances in the bitcoin mining and quantum computing sectors, with 10 companies seeing notable gains.

To come up with the best advances of the day, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

Micron Technology, Inc. (MU): Navigating Market Volatility in the Memory Chip Industry

A close-up of a computer motherboard with integrated semiconductor chips.

Micron Technology saw its shares rise 10.45 percent on Monday to close at $99.26 apiece, in line with broader sector optimism, after Foxconn’s record earnings provided the latest indication that demand for artificial intelligence infrastructure is set to jump this year.

Despite announcing disappointing earnings results in the past few weeks, optimism was boosted by developments linked to Nvidia, a titan in the artificial intelligence sector.

According to analysts, investors are buzzing about Nvidia’s continued demand for its high-end hardware and that its new devices could potentially integrate Micron’s innovative solutions.

Long-term growth prospects also look promising, with Micron expected to benefit from an expanding HBM market expected to skyrocket from $16 billion in 2024 to over $100 billion in 2030.

Total MU ranks 9 on our list of the stocks that rose today. While we recognize the potential of MU as an investment, our conviction lies in the belief that AI stocks hold greater promise to deliver higher returns and do so within a shorter time frame. If you’re looking for an AI stock that’s more promising than MU but trades at less than 5 times its earnings, check out our report on cheapest AI stock.

Disclosure: None. This article was originally published on Insider monkey.