Micron Technology Inc. (MU) shares slipped more than 1% in premarket trading Wednesday as tech investors decided to cash in some chips after a long winning streak in semiconductor stocks. The dip came even as the broader market looked perky—Nasdaq futures rose 0.5% and S&P 500 futures gained 0.2%.
The stock has been on a tear over the past year, and despite this little pullback, it's still riding a longer-term uptrend. The question on traders' minds: can Micron regain its short-term mojo after stepping back from recent highs?
Technical Levels: What the Charts Say
Right now, Micron is trading about 7.3% below its 20-day simple moving average of $1,050.69. That sounds like a red flag, but zoom out: it's still 6.2% above its 50-day SMA of $916.74 and more than 100% above its 200-day SMA of $472.44. So the stock has cooled off a bit, but the long-term trend is still your friend.
The relative strength index (RSI) sits at 50.12, which is basically dead center—neutral momentum. That means the stock has shaken off its previously overbought condition and is now in a consolidation phase. Think of it as catching its breath.
Key levels to watch: resistance near $1,089.50, and support around $891.50, which is close to the 50-day moving average. If sellers get aggressive, that's where buyers might step in.
Earnings: The Numbers Are Eye-Popping
Wall Street is expecting Micron to report its next quarterly results around Sept. 22. And the numbers are staggering. Analysts forecast earnings of $31.24 per share, up from just $3.03 a year earlier. Revenue is expected to hit $50.72 billion, compared to $11.31 billion last year. That's not a typo—revenue is projected to more than quadruple.
The stock trades at about 22.2 times earnings, which is reasonable given that growth. Analysts are overwhelmingly bullish, with a consensus Buy rating and an average price target of $1,548.86. Recent analyst moves include:
- KeyBanc raised its price target to $1,750 on July 14, maintaining an Overweight rating.
- Cantor Fitzgerald raised its target to $2,000 on June 29, also Overweight.
- Cantor Fitzgerald reiterated its Overweight rating with a $1,500 target on June 25.
So the Street is pretty excited about Micron's prospects.
Quality and Momentum Shine, Value Not So Much
According to market data, Micron scores exceptionally well on momentum (99.67 out of 100), quality (97.71), and growth (84.75). But its value score is a relatively weak 27.67. That means the stock isn't cheap—investors are paying up for the growth story, and the market seems fine with that.
ETF Ownership: A Double-Edged Sword
Micron is a big deal in several semiconductor ETFs. It makes up about 8.03% of the iShares Semiconductor ETF (SOXX), 8.39% of the Invesco S&P 500 Momentum ETF (SPMO), and 9.78% of the Invesco PHLX Semiconductor ETF (SOXQ). Because of those hefty weightings, any inflows or outflows from these funds can move Micron's stock. So keep an eye on ETF flows—they can amplify moves in either direction.
Price Action
Micron shares were down 1.11% at $972.20 in premarket trading Wednesday, according to market data. Not a crash, just a pause.
