Stock Charts: Samsung and SK Hynix stocks roll on Micron overnight earnings

On Thursday, the trading session on semiconductor stocks in South Korea rose following the earnings reports of United States chipmaker, Micron Technology. That of which, the chipmaker company surpasses its expectations overnight.

Subsequently, tech giant Samsung electronics and chipmaker SK Hynix saw a stock increase. Samsung increases at about 4.20 percent while SK Hynix gains about 6.95 percent.

Micron’s earnings per share

Meanwhile, still at the top, Micron reports it’s earning per share at about $1.71 with revenue amounting to $5.84 billion. According to Refinitiv, the Wall Street estimates Micron’s earnings per share is amounting at about $1.67 within its revenue amounting to $5.82 billion. Last year, during the same period, the company had a revenue amounting to $7.35 billion.

Sanjay Mehrotra, president & CEO of Micron Technology noted the company’s decline are because of the “challenging market environment.” Even if the United States chipmaker reveals its fiscal third quarter which was under Wall Street’s estimation, Micron Technology predicts its demand is about to start growing again for the fourth quarter performance.

Micron Tech stocks – After hours trading

On Wednesday, during after-hours trading, preceding the earnings reports, Micron Technology’s shares surge at about 4.78 percent. On Thursday, Manish Nigam, Asia-Pacific head of technology research at Credit Suisse said, “I think this after-market performance that you’re seeing from Micron will confound people and has confounded people that with negative prints, a lot of these stocks have continued to go up.”

Nigam added, “Tech was one of the worst performing sectors last year. Year-to-date, it is one of the best performing sectors.” He mainly tending on the recent tech gains as a “rebound” from the loss last year.

2019 Outlook

The trade tensions grow among the United States and China. It also added concerns on the Chinese economy rattling the confidence of a few key players in the industry. There has been slow and soft iPhone sales, at the same time the deceleration of the cryptocurrency mining attempts. All of which provides the investors with anxiety

Moving forward, according to Nigan, investors should look at the supply side issues. Micron Technology, SK Hynix and Samsung Technology signal a reduction for its capital expenditure.

Nigam said, “Based on the current (capital expenditure) guidance from all three main memory makers, you are looking at an underlying supply growth which will not be more than 15 percent.” Then he added,  “Demand growth, even in a reasonably bearish scenario, will probably be well ahead of that.”