Why did Micron Technology (MU) stock skyrocket on Friday?

Highlights

• Analysts raised the pricing expectations for Micron’s DRAM (dynamic random-access memory) in the coming quarters.
  
  
• Micron announced that MediaTek Inc. has validated its low-power double data rate 5X DRAM.
  
  
• The MU stock gained over 4% YTD.

The stocks of Micron Technology, Inc. (NASDAQ: MU) rallied on Friday after analysts raised the price expectations for DRAM. The stock was up over 8% to US$83.16 in intraday trading.

The Boise, Idaho-based Micron manufactures computer memory and data storage systems.

Analysts raised the pricing expectations for Micron’s DRAM (dynamic random-access memory) in the fourth quarter of 2021 and the first quarter of fiscal 2022 due to increased demand for PC end market that depends on DRAM. They also gave the stock a positive ranking.

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Stock performance and financial of Micron Technology (MU)

The firm has a market cap of US$93.09 billion, with a P/E ratio and forward P/E one year of 16.16 and 8.84, respectively. Its EPS and annualized dividend are US$5.15 and US$0.40, respectively.

The firm saw the highest price of US$96.96 and the lowest price of US$59.65 in the last 52 weeks. Its share volume on November 18 was 16,848,230.

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The firm will report its first-quarter earnings results of fiscal 2022 on Monday, December 20, at 4:30 pm ET. Meanwhile, in the fourth quarter of fiscal 2021, the company reported a revenue of US$8.27 billion, compared to a revenue of US$6.06 billion in the previous year's fourth quarter. On a GAAP basis, its net income came in at US$2.72 billion, or US$2.39 per diluted share, against an income of US$988 million, or US$0.87 per diluted share in Q4, FY20.

For Q1, FY22, the firm expected its revenue to be around US$7.65 billion with GAAP diluted earnings per share of about US$2.00 apiece.

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Bottomline

Micron said that MediaTek Inc. has validated Micron’s low-power double data rate 5X (LPDDR5X) DRAM for MediaTek’s new Dimensity 9000 5G flagship chipset for smartphones. The firm claims to be the first chipmaker to sample and validate the fastest and most advanced mobile memory in the industry. The stock value of MU surged 4.01% YTD.