Micron, SK Hynix Rise After Google Earnings Beat

Shares of Micron Technology (MU) and SK Hynix rose on Thursday after Alphabet Inc., the parent company of Google, reported earnings and provided capital expenditure guidance that exceeded expectations. The move comes as investors look for signs of sustained demand for memory chips used in data centers and artificial intelligence.

Reasons for the Rise

The primary catalyst was Alphabet's capital expenditure guidance, which indicated significant investments in cloud computing and AI infrastructure. As Micron and SK Hynix are key suppliers of DRAM and NAND memory chips used in these areas, any increase in spending by major customers like Google boosts demand expectations.

Market Context

Semiconductor stocks have experienced volatility recently due to concerns over slowing demand for consumer electronics. However, AI spending remains a strong driver for high-performance memory chips. Google's earnings report helped ease some of those concerns, at least in the near term.

Stock Performance

The exact percentage change in Micron or SK Hynix stock price was not specified in the original report, but the overall trend was positive. Both stocks are expected to continue reacting to capital expenditure news from major tech companies.