Global chip stocks rallied on Thursday after the U.S. memory semiconductor maker micron published sales forecasts that exceeded expectations and drove up the stock price.
Micron forecast revenue of $8.7 billion for the quarter ended November, plus or minus $200 million, above estimates of $8.28 billion, in accordance with LSEG data.
Shares of Micron closed up 15% within the US on Thursday.
Shares of larger rivals Samsung Electronics and SK Hynix rose in South Korea on Thursday. Samsung closed greater than 4% higher, while SK Hynix rose greater than 9%.
SK Hynix received a lift from an announcement on Thursday after the corporate said this It has began mass production a new edition of its high-bandwidth memory chips (HBM) and is aiming for delivery by the top of the yr.
SK Hynix and Micron are each suppliers of memory chips NvidiaThe products are designed for artificial intelligence processes in data centers. HBM chips are considered the important thing to AI.
Micron's earnings highlighted that demand for data center chips continues to be strong as investors search for signs about whether the rally in AI-related stocks will proceed. Micron reiterated that its HBM chips for 2024 and 2025 are sold out.
In Japan, shares of Tokyo Electron rose by 8%. Part of that increase was fueled by comments to the U.S. from the corporate's chief financial officer Nikkei that AI-related revenue will increase by about 15% to 690 billion yen ($4.8 billion) in the present fiscal yr.
SoftBank Groupthe bulk owner of chip designer Arm, rose greater than 4%.
The optimism surrounding Asian chip stocks also spread to Europe.
Dutch manufacturer of semiconductor equipment ASML rose greater than 4% in early trading in Europe. Other names including ASMI, Be semiconductors and STMicro were also significantly higher.
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