Micron Technology Inc. (NASDAQ:MU) shares are trending on Tuesday night.
Shares of the Idaho-based semiconductor company that designs and manufactures computer memory and data storage products rose 1.37% to $941.52 in after-hours trading on Tuesday.
Cramer: Micron Stock Moves With SK Hynix
CNBC’s Jim Cramer said Micron’s share price follows South Korea’s SK Hynix (NASDAQ:SKHY), another major memory chipmaker. He made the remarks Tuesday on “Mad Money” while answering a caller. The caller asked whether Micron is a long-term AI holding or too volatile, and whether options straddles, which profit from big price swings in either direction, would be a better approach.
“Whatever SK Hynix in Korea does, Micron does,” Cramer said. He called it “the type of trade I don’t like” and said Micron should trade on its own. He added that he hopes the linkage ends one day, “but it hasn’t yet.”
In Cramer’s view, buying MU also means taking on exposure to SK Hynix’s moves. That can add volatility, which the caller said he has seen in recent weeks.
The SK Hynix link is in focus after the South Korean chipmaker’s earnings. SK Hynix reported record third-quarter operating profit of 83.33 trillion won ($62.8 billion) on Tuesday, with quarterly revenue topping 100 trillion won for the first time.
Tech ETFs Gain as Sector Rallies
On Tuesday, the State Street Technology Select Sector SPDR ETF (NYSE:XLK), which tracks the technology stocks in the S&P 500, gained 1.70% to $189.49. The Vanguard Information Technology ETF (NYSE:VGT), which holds a broad basket of U.S. tech companies, rose 1.50% to $122.78.
Musk Puts Memory Demand in Focus
Separately this week, Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk said memory demand from humanoid robots could eventually exceed all other uses. This put Micron and SK Hynix in focus.
Micron Expands U.S. Critical Minerals Supply Chain
Last week, Micron announced an investment in advanced materials technology company Indium Corporation’s New York operations to secure critical minerals.
The deal is part of a plan to spend up to $3 billion on the U.S. supply chain.
Micron reported fourth-quarter results in late September. Revenue came in at $54.23 billion, beating the analyst estimate of $51.13 billion by 6.06%. Earnings per share were $33.42, topping the expected $31.50 by 6.10%
Trading Metrics, Technical Analysis
Micron Technology has a market capitalization of $1.05 trillion, a 52-week high of $1,255 and a 52-week low of $192.59.
MU’s Relative Strength Index (RSI) stands at 46.05.
The tech stock has risen 321.97% over the past 12 months and 194.45% so far this year. However, it has declined 11.88% over the past month.
Price Action: In the regular session on Tuesday, Micron stock closed at $928.76, up 2.77%, according to Benzinga Pro data.
The stock is trading at approximately 69.29% of its 52-week range.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: a katz / Shutterstock
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