Micron Rises to $1,016 Ahead of Quarterly Results
Micron shares climbed to $1,016, about 40% above July’s $736 low, as technical signals and demand from Nvidia, AMD, Google and Amazon pushed the stock ahead of earnings.
Micron Technology shares reached $1,016, roughly 40% above the July low of $736, as several technical indicators and customer demand coincided with a rally ahead of the company’s next earnings report.
On daily charts, the stock has held above an ascending trendline linked to lows since Aug. 6 and is trading above its 50-day exponential moving average. Micron remains above the Ichimoku cloud and the Supertrend indicator. The Relative Strength Index rose to about 60, its highest reading since June 29. Technical observers are watching $1,253 as the next resistance level, about 22% above current price. The average analyst price target stands near $1,295, roughly 27% above the present level.
Several of Micron’s largest customers — Nvidia, AMD, Google and Amazon — reported stronger-than-expected results and raised forward guidance in recent reporting cycles. Those reports coincided with the recent uplift in demand for high-bandwidth memory, a product line in which Micron competes with SK Hynix and Samsung Electronics.
Micron reported $41.5 billion in revenue for the third quarter, an increase of 74% from the prior quarter and 346% year-over-year. Company management expects fourth-quarter revenue to exceed $50 billion and projects revenue of about $242 billion for the following year. Analysts covering the stock are focused on the upcoming quarterly release later this month, with many projecting quarterly revenue above $50 billion.
On the supply side, Micron, Samsung and SK Hynix are expanding production capacity, but significant additional output is not expected to come online for several years. Industry reports indicate constrained near-term inventory levels and ongoing demand for memory chips.
By valuation, Micron’s forward price-to-earnings ratio is about 13.85, compared with a forward multiple of 19.9 for the S&P 500 and roughly 22 for the broader technology sector. The next material catalyst for Micron shares is the company’s earnings report scheduled later this month.
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