Chip-related stocks rally as Micron outlook signals loosening of inventory glut

Wallace Witkowski
Chip-related stocks rally as Micron outlook signals loosening of inventory glut

Chip-related stocks rallied Wednesday after a better-than-feared outlook from Micron Technology Inc. signalled that last year’s inventory glut of semiconductors may be working their way through the supply chain. The PHLX Semiconductor Index (SOX) rose 3.6% Wednesday, while the S&P 500 index (SPX) gained 0.2% and the Nasdaq Composite Index (COMP) rose 0.7%. Micron Technology Inc. (MU) shares were the clear winner Wednesday after the memory-chip maker topped Wall Street estimates for the quarter and forecast a better-than-feared outlook.