BUZZ - Micron shares rise as SK Hynix's profit surge signals strong demand for artificial intelligence

October 28 - ** Storage chip manufacturer Micron Technology (MU.O) rose 4.61% to $971.54, after competitor SK Hynix reported strong earnings.

** South Korea’s SK Hynix (000660.KS, SKHY.O) released quarterly profits (link), increasing more than sevenfold.

** The earnings data confirmed sustained strong demand for artificial intelligence infrastructure, which has driven up storage chip prices.

** Even though investors are increasingly concerned whether heavy spending can bring sufficient returns, memory chip makers are still benefiting from surging demand.

** According to data compiled by London Stock Exchange Group (LSEG), MU’s current price-to-earnings ratio is 5.09 times its expected earnings per share for the next 12 months, while peer SK Hynix trades at 2.95 times for the same period.

** After including today’s gains, MU has more than tripled so far this year, outperforming the Philadelphia Stock Exchange Semiconductor Index (.SOX), which has risen 62%.

** Meanwhile, larger rival Samsung Electronics (005930.KS) was up about 9% in early trading.

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