Micron (MU 0.23%) stock recorded big gains in Wednesday's trading thanks to bullish catalysts on two important fronts. The memory-chip company's share price ended the day's trading up 8.9% amid the backdrop of a 0.7% jump for the S&P 500 and a 1.1% gain for the Nasdaq Composite. The stock had been up as much as 11.9% at one point in the daily session.
The stock market's rebound rally continued today as investors bought back into stocks on hopes that the war with Iran could wind down in the not-too-distant future. Micron's share price also got a boost as the market reweighed recent news that some investors and analysts had considered to be a significant negative development for the company.
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Stocks rise on Iran war outlook
After some big sell-offs connected to geopolitical volatility, the market has seen a relief rally in Tuesday and Wednesday's trading. Investors are betting that there may be an end in sight to the war with Iran, and many growth-dependent tech stocks have seen significant valuation recoveries in conjunction with the trend. News that the United Arab Emirates could be prepared to enter the conflict on the side of the U.S. and Israel in order to reopen shipping lines through the Strait of Hormuz is boosting investor confidence that the situation could start to normalize within the next few months.
NASDAQ: MU
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Investors reassess the impact of Alphabet's new tech on Micron
Alphabet's Google division recently announced that it developed new compiling technologies that can dramatically reduce the size of data used for artificial intelligence (AI) models without any loss in quality. As a leading provider of advanced memory chips used in AI processors, Micron's business could potentially see some significant impacts stemming from Alphabet's new compiling tech.
While Micron stock initially saw significant pullbacks as some investors and analysts bet that the new compiling tech would lead to weaker demand for the memory-chip specialist's hardware, the market seems to be reappraising the potential effects of the new technology. The long-term impacts of the new compiling tech are difficult to pinpoint with certainty, but the recent rebound for Micron stock suggests many investors are now betting that Alphabet's advanced compiling software won't hurt the business.
