Micron Technology Inc. (Micron (MU)) shares took another hit in Friday's premarket trading, extending a selloff that began Thursday when the stock dropped 7.7% to close at $996.00. By Friday morning, shares were down another 3.97% to $956.45.
The weakness isn't unique to Micron—it's part of a broader retreat in semiconductor stocks. The trigger? Broadcom Inc. (Broadcom (AVGO)) reported strong quarterly results but didn't raise its long-term AI semiconductor revenue forecast. That was enough to spark profit-taking across AI-related chip stocks, and Micron—one of the sector's biggest winners—was particularly exposed.
Micron shares have surged 837.06% over the past year, so a little profit-taking was probably overdue. The stock has been trading near the top of its 52-week range, making it vulnerable to sharper selling when the broader market shows even modest weakness. Traders see an opportunity to lock in gains, and they're taking it.
Technical Trend Remains Bullish
Despite the recent pullback, Micron's long-term uptrend is still intact. The stock is trading 14.6% above its 20-day simple moving average and a whopping 169.1% above its 200-day moving average. The moving averages themselves are in a healthy alignment—the 20-day is above the 50-day, which is above the 200-day—following a golden cross formation back in June 2025.
Momentum indicators also look good. The moving average convergence divergence (MACD) remains above its signal line, suggesting that underlying momentum is still supporting the stock despite the recent volatility. The key level to watch is the 52-week high of $1,089.29. If buying interest returns, that's the resistance to break.
Earnings and Analyst Outlook
The next big catalyst for Micron is its earnings report, scheduled for June 24. Wall Street expects earnings of $19.30 per share, up from $1.91 a year ago, on revenue of $33.88 billion—compared to $9.30 billion in the same quarter last year. That's explosive growth, driven by AI demand for memory chips.
Analysts are still bullish. Earlier this week, Raymond James more than doubled its price target on Micron to $1,100, reiterating an Outperform rating. The firm noted that investor interest remains strong as AI reshapes the memory market and supports pricing. Morgan Stanley raised its forecast to $1,050 on June 3, and Susquehanna went even further, boosting its target to $1,750 on May 29. All three firms have Buy-equivalent ratings.
So, is this dip a buying opportunity? The technicals say the trend is still your friend, and the analysts are lining up behind the stock. But with the stock down nearly 10% from its high in just two days, it's a reminder that even the hottest AI trades can cool off quickly. The June 24 earnings report will be the real test.
