Chip Sector Up on Wall Street After Good Micron Forecast

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Chip company Micron Technology rose on Wall Street on Thursday. That company came up with a very positive outlook for the current quarter. Other chip companies were also put higher.

 

In addition to Micron’s forecasts, the sector also received support from chip manufacturer TSMC’s investment plans. According to Reuters news agency, the Taiwanese company wants to invest more than 85 billion euros in expanding its production capacity over the next three years.

Micron gained 4.7 percent. In addition to positive quarterly figures and the accompanying forecast, there were also reports that Micron would be interested in acquiring Japanese industry peer Kioxia for approximately $ 30 billion. Western Digital (plus 6.3 percent) would also be interested in that company. Other chip companies such as Intel, AMD, Qualcomm and Broadcom rose to 2 percent.

Investors also responded to President Joe Biden’s plans for investments worth more than $ 2 trillion in infrastructures such as bridges and water pipes, greening the economy, and further spreading broadband internet in the United States. These plans are funded by an increase in the tax for companies.

There were also new figures on the number of benefit claims in the US. Last week they unexpectedly went up to 719,000. The Dow Jones index was 0.2 percent higher after a few minutes of trading at 33,046 points. The broad-based S&P 500 gained 0.7 percent to 4,001 points, and the Nasdaq tech exchange rose 1.6 percent to 13,296 points.

Pharmaceutical Johnson & Johnson was lowered by 1 percent. An error in a US factory has prevented 15 million doses of its corona vaccine from being used.

Ford Motor (minus 0.7 percent) ceases production of its pickup trucks in two factories due to the chip shortage. The two-car factories will be closed for two weeks. The pickup trucks are Ford’s most profitable car model.

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