Micron Technology Inc. (MU) shares soared to a 15-year high Wednesday.
Furthermore, Micron led the S&P 500 index gainers. This after the memory chip maker exceeded Wall Street estimates and boosted its outlook. Micron posted earnings that beat expectations. In addition, the company and raised its forecast capital spending. All of this prompted several analysts to hike their price targets on the stock.
Micron shares closed up 8.5% at $37.09 on heavy volume Wednesday. This was the stock’s highest close since March 2002. Shares are up 69% for the year.
Memory prices have surged over the past year. And the company forecast fiscal first-quarter earnings per share of $2.09 to $2.23 on revenue of $6.1 billion to $6.5 billion. Before the outlook, analysts had forecast earnings of $1.82 a share on revenue of $6 billion. And after Micron’s outlook, the Wall Street consensus rose to $2.11 a share on revenue of $6.28 billion.
Furthermore, RBC Capital Markets analyst Amit Daryanani said Micron’s 2018 capital expenditure guide is a positive for Lam Research Corp. (LRCX), #Applied Materials Inc. (AMAT) and Ichor Holdings Ltd. (ICHR). Shares of Lam rallied 5.9%, Applied Materials shares surged 6.4%, and Ichor shares jumped 7.8%.