Key Highlights
- Micron Technology’s (NASDAQ:MU) profit surged to $1.89 billion, or $1.68 per share, compared to $332 million, or 30 cents per share, last year.
- Revenue rose nearly 37% to $9.3 billion, surpassing analyst estimates of $8.86 billion, mainly due to strong demand for high-bandwidth memory (HBM) used in AI systems.
- Micron forecasts revenue between $10.4 billion and $11 billion, with adjusted earnings per share expected to be $2.35 to $2.65.
- Memory business cycles are typically volatile, with inventory fluctuations causing significant price swings. Consequently, Micron’s revenue growth can be quite sharp and unpredictable. However, currently, the demand for memory is increasingly sustained by the broader, long-term growth trend of AI investment. This is reflected in the rapid expansion of Micron’s memory segment. Most Wall Street analysts remain optimistic, expecting ongoing growth in data center investments to support the industry through this year and into the next.
Source: InvestingPro
Technical Analysis Perspective
- Micron penetrated above a robust obstacle between 114 – 115, which was a previous triple top formation between September 2024 to November 2024.
- The breakout started a strong pre-earnings rally in early June 2025.
- Prices are hovering inside a rising channel with a support sitting at 124 – 123.50 today.
- A break below this support will pave the way for a dip to 115 -114 (September 2024 to November 2024) highs.
- Technically, a breakout of the recent or all-time high is retested before stock triggers another leg higher on the back of strong results and guidance.
- A failure to break 124 -123.50 base would negate the retest move and pave the way for a rise to 134 – 136 region.
Weekly Candlestick Chart
MU Seasonality Chart:
MU closes -1.1% lower in June & July, 50% to 30% of the time respectively since 2006, which is not in line with what is happening in June 2025! May trigger a gradual sell-off.
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