(Reuters) – Shares of chipmakers rose on Wednesday, following Micron Technology Inc’s forecast of a recovery in chip demand in the second half of the year, easing concern that an increase in market tensions could worsen the downturn in the industry.
FILE PHOTO: the Memory of the chip and parts of the united states memory-chip maker, MicronTechnology are shown at their fair booth at the industrial trade fair in Frankfurt, Germany, on July 14, 2015. REUTERS/Kai Pfaffenbach/File Photo
The company also said that it had resumed some shipments to and Huawei Technologies after a US ban on the sale of the products to meet the Chinese smartphone maker.
It is a prohibition, and the escalation in the trade war between the United States and China are threatened on the growth in a sector that is already struggling with an over-supply.
But the Micron upbeat results and positive commentary on the prospects, the question of hope, sparking a rally in the reports, shares of chipmakers.
Micron shares are up 10%, while Nvidia Corp., Intel Corp., Xilinx Inc., Advanced Micro Devices rose from 2% to 6%. Lam Research and Applied Materials will also be extracted.
In other european countries, including those from STMicroelectronics, Infineon, Dialog Semiconductors, BE Semiconductor, and Siltronic, were all trading higher.
“The bulls are in the Micron to get more,” Evercore analysts wrote in a note.
(Image: Micron PERFORMANCE the performance – tmsnrt.rs/2ZT1saX)
U.S. chipmakers, are suspended the shipments to the Smartphone, after the united states government on the 15th of May, the world’s largest telecom equipment maker, and 68 branches, an “Entity List,” a prohibition on the acquisition of components and technology from the AMERICAN companies without the prior approval of the central government.
Micron said that it will not have the ability to predict the volumes, or periods of time during which it will be in a position to ship the products to Huawei, its largest customer.
Analysts at Morningstar said in Microns, the results showed signs of improvement against a weak market environment, and the concern is that these terms may not be extended”.
Reporting Sayanti Chakraborty in Bengaluru; Editing by Sweta Singh and Saumyadeb Chakrabarty