Why Micron Technology Shares Gained 11% In October
Shares of Micron Technology (NASDAQ: MU) rose 11% in October 2019, according to data from S&P Global Market Intelligence. The maker of computer memory chips and related storage products came off of a harsh earnings reaction near the end of September, regaining some momentum thanks to signs of improving market conditions in Micron's most important sectors.
The bulk of Micron's October gains arrived in the second half of the month, when Bernstein analyst Mark Newman published a rosy analysis of the memory market's street-price trends.
Micron and its peers in the memory sector have reduced their production volumes recently in response to weaker sell-through prices on memory chips. These actions have resulted in low supply and rising demand, serving to stabilize the pricing picture. That's exactly why the suppliers tapped the brakes in the first place, and this fiscal discipline is starting to pay dividends.
Source Fool.com
