Shares of Micron Technology Inc. surged 6.44% on Monday, outperforming the broader market, as investors flocked to the semiconductor stock amid optimism over its prospects in the burgeoning artificial intelligence (AI) space and expectations of favorable policies under the newly elected President Donald Trump.
The chipmaker's rally was fueled by a broader surge in semiconductor stocks following Trump's victory, with investors betting that the president-elect's "America First" approach could translate into measures to support domestic chip companies, such as tariffs on imports. Trump had previously vowed to impose a 10% tariff on imports from all countries and 60% duties on imports from China, a potential boon for U.S. chipmakers like Micron Technology.
Beyond the Trump tailwind, Micron Technology is also seen as a prime beneficiary of the global shift towards AI computing. The company has recently launched a new portfolio of memory solutions specifically designed to meet the demands of AI workloads, underscoring its focus on capitalizing on this lucrative opportunity. Analysts project Micron to deliver record revenue in fiscal 2025, driven by growing sales of its advanced memory products for data centers and AI infrastructure.