Micron Technology is rebounding after saying China ban will have minimal impact

Markets Insider

• Micron Technology is rebounding after saying its temporary ban in China will have a limited impact on revenue.
• Share slid 5.5% Wednesday after a Chinese court ruled in favor of United Microelectronics and Fujian Jinhua Integrated Circuit, which said Micron had infringed on patents in China.
• Watch Micron trade in real time here.

Shares of Micron Technology are rallying Thursday, up 1.32%, after the company said the impact from a sales ban in China won't have be a huge negative on its business.

China placed a temporary ban on chip sales from Micron's Chinese subsidiaries, blocking the $59 billion company from the largest semiconductor market in the world, after a Chinese court ruled in favor of United Microelectronics' and Fujian Jinhua Integrated Circuit's January complaint that Micron infringed on patents in China protecting memory storage and other products. Shares of Micron fell 5.5% after the news broke on Tuesday. US markets were closed Wednesday in observance of Independence Day.

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"Micron anticipates that the negative impact to revenue this quarter relating to the injunction will be approximately 1%, and the company continues to expect revenue to be within the previously guided range of $8.0 to $8.4 billion," the company said in a press release.

Morgan Stanley analyst Joseph Moore agrees. "Short term ramifications should be largely immaterial," he wrote in a note out to clients on Thursday. Moore pointed out that the $42 million in damages requested by UMC are minimal compared to Micron's $32 billion revenue run rate.

Micron is up 19.33% this year.