Micron shares spike after a deal with Intel

• Micron shares closed up 6.4 percent on Tuesday, a day after announcing a deal with Intel and saying it would buy back $10 billion of its shares.
• The stock already traded higher on Monday after the chipmaker raised quarterly guidance.

An employee checks a silicon wafer on the production line of Micron's plant in Asia.

Seokyong Lee | Bloomberg | Getty Images

Micron Technology shares closed up 6.4 percent Tuesday, a day after it announced a deal with Intel to make and ship the next generation of chips used in flash drives and digital cameras.

Micron also said it would buy back $10 billion of its shares.

On Monday Micron shares rose 3.9 percent after the chipmaker raised expectations for its fiscal third quarter ending in May. It now expects sales in the quarter to be in the range of $7.7 billion to $7.8 billion, up from previous guidance set at $7.2 billion to $7.6 billion. The stock is up nearly 35 percent this year through Monday.

Intel shares are reacting more modestly, up 0.2 percent Tuesday after climbing 1.5 percent on Monday.

WATCH: Micron-Intel announce shipment of new NAND chip

VIDEO3:0603:06

Micron and Intel announce shipment of new NAND chip

Fast Money

Programming Note: For more on Micron, watch CEO Sanjay Mehrotra's interview on Mad Money tonight at 6 p.m. ET.