MU - Why Micron Technology Stock Bucked the Market Downtrend on Thursday
2024-04-25 14:55:00 ET
Shares of Micron Technology (NASDAQ: MU) gained ground on Thursday, climbing as much as 1.1%. While this might not seem like much to celebrate, the gains came against the backdrop of a broader market downturn as the Nasdaq Composite lost 0.8% and the S&P 500 shed 0.6% (as of this writing). As of 1:41 p.m. ET, the stock was still up 0.5%.
The catalyst that sent the memory and storage chipmaker higher was word that the company would receive as much as $13 billion in loans and subsidies from the CHIPS Act.
The White House announced on Thursday that Micron would receive grants and loans under the CHIPS and Science Act, a program designed to revitalize the semiconductor industry in the U.S. Micron, a leading supplier of memory (DRAM) and storage (NAND) chips, will receive up to $6.1 billion in federal grants to subsidize the construction of two fabrication facilities -- one in Clay, New York, and the other in Boise, Idaho, where Micron is headquartered. In addition to the direct funding, the preliminary agreement also provides $7.5 billion in loans to support these projects.
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Why Micron Technology Stock Bucked the Market Downtrend on Thursday