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Hot stock Micron surging again after chipmaker raises its guidance due to ‘healthy’ semiconductor industry

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Key Points
  • Micron increases its financial guidance for its fiscal third quarter.
  • The company now expects sales for the quarter to be in the range of $7.7 billion to $7.8 billion versus its previous guidance of $7.2 billion to $7.6 billion.
A booth of Micron Technology at an industrial fair in Frankfurt, Germany.
Kai Pfaffenbach | Reuters

Micron shares are rising as the company said its financial results will be better than expected.

The chipmaker increased its guidance on Monday for its fiscal third quarter ending in May.

Micron now expects sales for the quarter to be in the range of $7.7 billion to $7.8 billion versus its previous guidance of $7.2 billion to $7.6 billion. It also forecasts earnings per share of $3.12 to $3.16 compared with the prior target of $2.76 to $2.90 for the quarter.

"Our third quarter results are driven by focused execution of our strategy against a backdrop of healthy industry fundamentals," CEO Sanjay Mehrotra said.

Shares of Micron rose 3.9 percent Monday.

One Wall Street analyst said last week Micron shares are a great way ride the chip industry's secular growth.

"Micron offers a unique way for investors to gain exposure to DRAM and NAND markets at what we view as attractive valuations," RBC Capital Markets Amit Daryanani said Wednesday.

Micron's stock is one of the best-performing names in the market. Its shares are up more than 100 percent in the previous 12 months through Monday morning versus the S&P 500's nearly 15 percent return.