Micron rebounds as AI demand bolsters memory outlook despite volatility

Micron Technology shares rose about 2% on Wednesday, buoyed by strong results from SpaceX and an upbeat forecast from Super Micro Computer that revived investor interest in AI-related stocks after a difficult month for the memory chip maker. Super Micro raised its fiscal first-quarter revenue outlook to $18.5-$19.5 billion from a prior $14.5-$15.5 billion range, while SpaceX reported strong quarterly results and signaled up to $40 billion in fourth-quarter spending. The developments eased concerns about AI spending sustainability, though investors remain focused on memory demand, pricing, supply growth, and financing risks in the sector. Micron shares had fallen 16% in October through Tuesday and remain 26% below their June peak, despite more than tripling in value this year. Analysts see resilient memory demand but warn of price and debt risks, while Micron's Taichung unit reached a labor agreement with its union, though a separate union in Taoyuan planned a one-day warning strike over bonuses.