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Micron Technological innovation stock is buying and selling increased. A Taiwan earthquake impacted output at the company’s DRAM plant in Taoyuan, and buyers see charges soaring.
Dreamstime
Micron Technological innovation
stock is investing greater Monday following an earthquake in Taiwan has impacted output at the company’s DRAM plant in Taoyuan.
According to the U.S. Geological Survey, the island knowledgeable an earthquake of magnitude 6.2, centered 21 kilometers south-southeast of Yilan, about an hour’s generate from Taoyuan.
Micron (ticker: MU) said in a assertion that all of its staff members in Taiwan are safe. “The earthquake prompted effects to output at our services in Taoyuan,” the firm claimed. “Micron is evaluating the influence and pinpointing the ideal steps to return to full manufacturing.”
Micron inventory on Monday is up 2.2% to $68.97.
Wells Fargo chip analyst Aaron Rakers wrote in a research note Monday that the Taoyuan plant accounts for 35% of Micron’s DRAM production, and 9% of full worldwide DRAM capacity.
Investors are bidding up Micron stock on the news, evidently on the thesis that a extended shutdown could increase price ranges on DRAM, which are utilized in individual desktops, mobile phones and other electronic equipment. The DRAM marketplace is dominated by a few corporations, like Micron, Samsung, and SK Hynix.
Produce to Eric J. Savitz at [email protected]