Micron jumps as Samsung's decision to cut chip output bolsters confidence
vzphotos/iStock Editorial via Getty Images

Micron Technology (NASDAQ:MU) shares gained over 6% premarket on Monday after fellow chipmaker Samsung Electronics (OTCPK:SSNLF) announced plans to reduce its memory chip production.
"We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured," Samsung Electronics said in a regulatory filing on Friday, according to multiple media outlets.

The move is being seen as a positive for Micron, according to KeyBanc Capital Markets, which suggests that it "will allow a quicker return to supply-demand balance and potential rebound and also remove concerns on irrational supply behavior."
Citi's Christopher Danely explained "Samsung's decision is huge positive for the industry, and should help to spur a recovery starting in 2H."
Samsung's (OTCPK:SSNLF) production cut comes after rivals Micron (MU), SK Hynix and Kioxia Holdings have reduced their spending and cut their chip production.
Micron (MU) CEO Sanjay Mehrotra late last month, in a statement announcing Micron's second-quarter results and outlook, said he was "confident" in the company's long-term demand outlook and "we expect gradual improvements to the industryâs supply-demand balance."