Micron shares rose more than 3% intra day Tuesday, but shed some of those gains by 2:30p.m. The memory chip manufacturer was the most discussed ticker on StockTwits.com this afternoon.
In its quarterly report filed yesterday, Micron Technology disclosed it had received $90 million from "a customer" to secure DRAM supplies through 2016. The undisclosed customer will pay market prices for the DRAM chips through September 2016, according to the SEC filing. Some bloggers speculated that the undisclosed customer was Apple. In a Jan. 7 SEC filing, Micron had disclosed that it received $250 million in the first quarter of 2014 from "a customer for product to be supplied through September 2016." Investing blogs such as margolismatt.com have said the customer was likely Apple.
Apple has long been secretive about its suppliers. Micron bought former Apple supplier Elpida Memory back in 2012 for $2.5 billion.
Some investors waited for Micron to confirm the news, or at least hint at the relationship enough to justify the share gains.
$MU that was a catalyst like move in a market that is quite uncertain. I would be surprised to not hear something later today/tmrw-- Greg Hogue (@ghogue02) Apr. 8 at 02:15 PM
Also fueling gains today was continued buying based on upgrades last week, following earnings. Topeka Capital Markets, Needham & Company and Jefferies all boosted price targets in notes to investors released April 4, according to the Analyst Ratings Network. Piper Jaffray initiated coverage of Micron on April 4 with an overweight rating and a $30 target.