Micron Technology (MU) shares surged 5.18% in pre-market trading on Thursday, outpacing the broader rally in U.S. semiconductor stocks. The jump comes in response to President Donald Trump's announcement of potential 100% tariffs on semiconductor imports, coupled with exemptions for companies manufacturing in the United States.
Trump's statement, made alongside Apple CEO Tim Cook, indicated that chipmakers committed to U.S. production would be spared from the tariffs. This news has been interpreted positively by investors, who see potential benefits for domestic semiconductor manufacturers like Micron. The Philadelphia Semiconductor Index, which has already seen an 11.5% year-to-date increase, is expected to see further gains.
While the full details of the tariff implementation remain unclear, analysts suggest that the impact on U.S. chipmakers may be manageable. UBS Global Wealth Management noted that most chips enter the U.S. within systems rather than as standalone components, potentially limiting the tariffs' effect. This sentiment, combined with the ongoing trend of major tech companies like Apple pledging increased U.S. investments, has contributed to the positive market reaction for Micron and its peers in the semiconductor industry.
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