Why Micron Technology Stock Gained On Monday

Micron Technology (MU +6.25%) stock jumped 6.3% on Monday, Nov. 9, as chip stocks continue to recover after last week’s mid-week sell-off.

The S&P 500 (^GSPC +2.35%) and the Nasdaq Composite (^IXIC +2.74%) finished up 2.4% and 2.8%, respectively.

MU – Micron Technology

$733.15+$43.15 (+6.25%)

NASDAQ · As of 4:00 PM ET 11/09/26

Micron and chip stocks rebound after midterm sell-off

The Democratic win in last Tuesday’s midterms raised worries about the AI data-center build-out. Many successful candidates ran on promises of increased scrutiny of data center permitting or outright moratoriums on new builds, including candidates in key states like Texas and Ohio.

A slowdown in data center building could mean fewer orders for Micron’s precious memory chips.

But beginning Friday and continuing into today, it appeared investors were confident the capex would keep flowing.

Micron earnings look strong, but data center risk remains

Micron’s latest quarterly numbers were once again incredibly strong: revenue was up 379% year over year to $54.2 billion.

Image source: Getty Images.

The business looks as strong as it’s ever been, but in my mind, last week’s drop shows just how much of the stock price is based on perception. The share price cannot afford a real slowdown in data center building and, despite the recovery, I think there is a good chance we’ll see a meaningful impact on construction from political opposition, especially at the local level where voters are especially animated: 40 out of 41 data center measures that were on the ballot last week went the wrong way for the industry.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.