Micron backs indium processing in New York; shares barely move

Micron Technology is putting money into indium, a critical mineral, to back mineral processing in New York state, MarketWatch reported on the morning of Oct 20. The report gave no amount, partner, site details or timetable. Micron has made no securities filing on the investment.

The stock barely reacted. Micron closed at US$896.07 on Nasdaq on Oct 20, down 0.98% from US$904.90 the session before. On Oct 21 it gained 1.96% to US$913.67.

A supply-chain step with no price tag

With no disclosed amount, there is no way yet to weigh the investment against the size of Micron’s business. In the fiscal fourth quarter, which ended Sept. 3 and was reported on Oct 9, revenue reached US$54.2 billion. That was up 379.3% from a year earlier and 30.8% from the prior quarter. Operating profit came to US$43.8 billion, the highest in at least six quarters.

Still trailing the chip index

From the Oct 19 close through Oct 21, Micron rose 0.97%. The PHLX Semiconductor Index, a gauge of US-listed chip stocks, gained 1.67% over the same stretch. As of Oct 21, Micron was still down 14.22% from its Sept. 30 level.

The shares had closed at US$878.84 on Oct 16. They then moved higher after a Chinese memory rival projected sharply higher revenue, as our earlier report covered.

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In Seoul, shares of Samsung Electronics and SK hynix rebounded on Oct 21, the Maeil Business Newspaper reported. The paper pointed to tight chip supply and demand tied to AI.

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Information only, not investment advice.