Micron Technology Inc. (MU) stock rebounded in premarket trading Monday after a sharp selloff at the end of last week, as improving risk appetite lifted growth-oriented technology stocks.

The memory chipmaker's shares rose about 4% before the opening bell, with Nasdaq futures advancing 0.80% and S&P 500 futures gaining 0.35%, signaling renewed demand for higher-beta names.

Micron Stock Rebounds After Semiconductor Selloff

The recovery follows a difficult Friday session in which Micron shares closed down 13.25% amid a broader semiconductor sector retreat.

The weakness came despite Micron's strong artificial intelligence-driven growth outlook and was largely tied to investor reaction to results from Broadcom Inc. (AVGO).

While Broadcom reported solid quarterly performance, it maintained its long-term AI semiconductor revenue forecast instead of raising it, prompting profit-taking across AI-related chip stocks.

Investors See Opportunity In AI Chip Pullback

KKM Financial Chief Executive Officer Jeff Kilburg views the recent semiconductor pullback as a buying opportunity rather than a sign that the artificial intelligence-driven chip rally is ending.

Kilburg told CNBC on Friday that the sharp decline in the Nasdaq and chip stocks was "eye-opening," but said investors should not flinch because the broader technology trend remains intact.

Kilburg said KKM had previously exited its Micron position roughly $200 higher and is now watching the stock for a potential re-entry point. While the firm is not yet buying shares, he said Micron remains on its watchlist as KKM seeks opportunities created by the recent bout of profit-taking. "We're looking at Micron to get back in," he said.

He added that KKM had also reduced its position in Advanced Micro Devices Inc. (AMD) before the sector pullback and continues to favor AI-related semiconductor companies, including AMD and Intel Corp. (INTC).

Kilburg said the firm recently bought Broadcom following its post-earnings decline because it remains confident in the company's earnings outlook and long-term growth prospects.

Kilburg said semiconductor stocks had become overheated after their strong rally. Semiconductors became frothy, Kilburg said, but added that the need for more advanced chips has not disappeared as artificial intelligence demand continues to expand across major technology platforms.

Despite the recent pullback, Micron remains one of the semiconductor sector's top performers, with shares up 678.74% over the past year, making the stock vulnerable to profit-taking when broader market sentiment weakens.

Technical Indicators Point To Stabilizing Momentum

From a technical perspective, Micron remains in a strong long-term uptrend. The stock is trading above its 20-day, 50-day, 100-day and 200-day simple moving averages, while the moving-average structure remains bullish following a golden cross established in June 2025.

Momentum indicators also point to stabilizing conditions, with the MACD above its signal line and the histogram remaining positive, suggesting selling pressure may be easing.

The stock is trading below its 52-week high of $1,089.29 reached in June but remains well above its 52-week low of $103.38. Technical traders are watching the 20-day moving average near $849.82 as a key support level, while the June peak around $1,089.29 represents major resistance.

AI Memory Demand Supports Long-Term Growth

Micron, one of the world's largest memory and storage chip manufacturers, has benefited from surging demand for artificial intelligence infrastructure through its DRAM and NAND flash products, with revenue exposure spanning data centers, mobile devices, consumer electronics, industrial and automotive markets.

Wall Street Awaits Earnings And Stays Bullish

The company's next major catalyst is its scheduled June 24 earnings report. Wall Street expects earnings of $19.33 per share, up from $1.91 a year earlier, on revenue of $33.90 billion compared with $9.30 billion in the prior-year period.

Analysts remain broadly positive on the stock. Recent rating actions include Morgan Stanley raising its price forecast to $1,050 with an Overweight rating, Raymond James lifting its price forecast to $1,100 while maintaining an Outperform rating, and Susquehanna increasing its price forecast to $1,750 with a Positive rating.

Micron ETF Exposure And Premarket Stock Action

Micron also carries significant weightings in major semiconductor-focused exchange-traded funds, including the iShares Semiconductor ETF (SOXX) and the First Trust Nasdaq Semiconductor ETF (FTXL), meaning fund flows can amplify moves in the stock.

MU Stock Price Activity: Micron Technology shares were up 3.59% at $895.00 during premarket trading on Monday, according to market data.