Micron shares surge at supply licences for Huawei
The computer memory company expects to recover from 2019 bottom
Micron stock is on the rise as the company has received licences to supply products to its major customer Huawei, Reuters reports.
The licenses will allow US computer memory producer Micron to trade directly with the Chinese tech manufacturer.
Sumit Sadana, Micron’s chief business officer, said that the licences are not likely to have a material impact on the company's revenue. He also added that Micron has to find out whether its chips work with Huawei's brand new phones.
On December 18 Micron published its quarterly report for the investors. Its earnings have finally beaten Wall Street estimations after a weak second quarter. Micron CEO Sanjay Mehrotra expects a further recovery in the third quarter of fiscal 2020.
Micron stock has risen during the extended trading amid the news. Prior to the market opening in the US, the shares of the memory producer were up 4 per cent.
After the ban on dealing with Huawei announced in May, Micron revealed that some of its products could be legally shipped to China, while others remained barred.
In June, a report by the New York Times claimed that major US chipmakers were successfully circumventing sanctions against the Chinese tech giant. The list of the companies that continued trading with the disgraced company included Intel and Micron.
In November, the US authorities started granting temporary general licences for the local companies to trade with Huawei. According to the US Commerce Department, it received more than 200 applications.
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