Micron Technology, Inc. (NASDAQ: MU) is having a pretty strong day in the market today after the company denied recent reports. The reports suggested that there was a significant interruption in one of the company’s factories. However, with the denial, investors are breathing easy, which is sending the stock up. Of course, our friends at Trade Ideas were the first to alert us to the gains. At the moment (10:28), MU is trading at $30.04 per share after a gain of $0.91 per share or 3.11% thus far today.
MU Gains On Denial Of Factory Interruption
As mentioned above, Micron Technology is having an incredibly strong day in the market today after denying a report that originally appeared on TrendForce. The report suggested that an incident took place at the MU factory in Taiwan, which will lead to a significant interruption for the production of the company’s memory chips. In particular, TrendForce said that the company was dealing with a nitrogen leak at the facility, forcing a decline in production and affecting about 5.5% of the company’s global DRAM production capacity for the month of July.
However, while MU has admitted that a minor issue took place, they adamantly deny that it will have any ill affect on business operations. In a statement, MU had the following to offer to investors…
“There was indeed a minor facility event but operations are recovering speedily without material impact to the business.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MU. In particular, we’re interested in learning more about the incident and seeing if there is going to be any affect on the business as a result. Nonetheless, things are looking good at the moment. We’ll continue to follow the story closely and bring the news to you as it breaks!
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