Micron Technology, Inc. (Micron (MU)) shares are climbing in Tuesday's premarket session, as investors wade back into semiconductor stocks amid improving market sentiment and a broader tech rebound.

Nasdaq futures were up 0.70% Tuesday morning, while S&P 500 futures gained 0.44%. The semiconductor sector is leading the charge, with the iShares Semiconductor ETF (SOXX) rising about 2% after posting a roughly 6% gain in the previous session.

This bounce comes after a rough end to last week. Micron shares fell 13.3% on Friday during a broad semiconductor sell-off triggered by Broadcom Inc. (Broadcom (AVGO)) maintaining—rather than raising—its long-term AI semiconductor revenue outlook. That was enough to spook the market, but some investors see it as a buying opportunity rather than the end of the AI chip rally.

Investor Sentiment And Re-Entry Watch

KKM Financial CEO Jeff Kilburg is one of those optimists. He told CNBC on Friday that the sharp decline in the Nasdaq and chip stocks was "eye-opening," but said investors shouldn't flinch because the broader technology trend remains intact.

Kilburg noted that 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 isn't buying shares just yet, he said Micron remains on its watchlist as KKM looks to take advantage of the recent profit-taking. "We're looking at Micron to get back in," he said.

Micron remains one of the market's strongest momentum plays after a powerful rally over the past year, fueled by growing demand for AI infrastructure and memory products.

Technical Picture Remains Bullish

Micron's long-term technical setup still looks solid. The stock is about 14.6% above its 20-day simple moving average of $859.94 and roughly 170% above its 200-day simple moving average of $365.01. That's a massive gap, but it reflects the stock's sustained upward trajectory.

The moving averages are in a bullish alignment—the 20-day is above the 50-day, and the 50-day is above the 200-day. That pattern typically signals sustained upward momentum. However, the MACD (moving average convergence divergence) remains below its signal line, suggesting that the rally's pace has cooled in the near term.

Traders will be watching resistance near Micron's 52-week high of $1,089.29. On the downside, the 20-day moving average around $859.94 is the nearest major support level.

Micron Earnings Outlook In Focus

The next big catalyst for Micron is its earnings report, scheduled for June 24. Analysts are expecting earnings of $19.33 per share, up sharply from $1.91 a year earlier. Revenue is projected to hit $33.9 billion, compared with $9.3 billion in the year-ago period—nearly quadrupling.

At current levels, the stock trades at about 44.8 times earnings, reflecting investors' high expectations for continued AI-driven growth. Wall Street remains bullish, with a Buy consensus on the stock. Recent analyst actions include price target increases from Wells Fargo to $1,220, Cantor Fitzgerald to $1,500, and Morgan Stanley to $1,050.

AI Demand Continues To Drive Growth Story

Micron is one of the world's largest memory-chip manufacturers, supplying DRAM and NAND products to data centers, smartphones, consumer electronics, industrial markets, and automotive applications. Strong demand for AI servers and data center infrastructure has been a key growth driver, and investors continue to view Micron as a major beneficiary of the expanding AI ecosystem.

Micron Price Action

Micron shares were up 3.9% at $986 in Tuesday's premarket trading.