Micron, the largest U.S. memory chipmaker, plunged more than 4% due to disappointment in earnings, but most semiconductor stocks rallied, with AMD, called the “second NVIDIA,” soaring nearly 5%, sending the Philadelphia Semiconductor Index, a semiconductor gathering, soaring nearly 2%.
On the 28th (local time), the Philadelphia Semiconductor Index recorded 3420.99 points, up 1.77% from the previous trading day in the New York Stock Exchange.
For now, AMD jumped nearly 5%. AMD surged 4.78% from the previous trading day to $102.76 in the New York Stock Exchange.
This is attributed to the fact that the chief technology officer (CTO) of Microsoft (MS), a leading U.S. technology company, said, “AMD’s position in the artificial intelligence (AI) field is solid.”
Microsoft’s CTO Kevin Scott said at a conference in Dana Point, California, that “Nvidia and AMD are making increasingly attractive graphics processing units (GPUs), and that their position in the AI market will become stronger and stronger.”
AMD is a long-time client of Microsoft, and Microsoft has long been supplied with semiconductors from AMD. In particular, Microsoft is known to be working with AMD to develop AI-customized semiconductors.
Not only did AMD jump nearly 5% due to his remarks, but NVIDIA, the largest beneficiary of generative AI, also rose 1.46%.
Not only these but also most other semiconductor stocks rallied. Intel rose 1.65%, British semiconductor design firm ARM, which was recently listed on the U.S. stock market, rose 4.72%, and Taiwan’s TSMC rose 1.14%.
In comparison, Micron, the largest memory chip maker in the U.S., plunged more than 4 percent. On the New York Stock Exchange, Micron plunged 4.41% from the previous trading day to $65.20.
Micron reported earnings results that exceeded market expectations. But the outlook for the next quarter disappointed the market.
Micron forecasts Q4 earnings per share to be $1.07. This is more than the market’s estimate of a 95 cents loss compiled by earnings company Refinitiv.
This shows that the memory semiconductor industry has not fully recovered yet, greatly disappointing the market. As a result, the stock price seems to have plunged more than 4%.
Micron plunged, but the Philadelphia Semiconductor Index closed up nearly 2% as other semiconductor stocks rallied in unison.