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What happened: Micron (MU) jumped 11% to hit an all-time intraday record on Tuesday.
What’s behind the move: The memory chipmaker said on Tuesday it has begun shipping its largest commercially available SSD. The 245TB Micron 6600 ION SSD allows companies to store far more data in less space, using up to 82% fewer racks than hard drives.
Fitch also upgraded the memory chipmaker’s credit rating from BBB to BBB+ and assigned it a stable outlook.
“The upgrade reflects Micron’s improved financial profile following significant debt repayments over the past 12 months,” Fitch Ratings said in a statement.
The credit rating agency said Micron is also benefiting from surging AI-driven demand for memory products. That demand “is driving materially improved profitability and near-term revenue visibility, with customers including hyperscalers increasingly seeking long-term supply agreements to secure dedicated capacity.”
What else you should know: Shares of Micron, which manufactures memory chips used in everything from smartphones to AI servers, have been on fire this year, helping drive the semiconductor rally as enterprise spending on infrastructure takes center stage.
The stock is up 122% year to date and 690% over the past year.
During their earnings calls last week, Meta (META), Microsoft (MSFT), and Apple (AAPL) all flagged rising memory costs.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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