Micron Technology, Inc. (NASDAQ:MU) stock rose in Tuesday’s premarket session as investors returned to semiconductor stocks amid improving market sentiment and a broader rebound across technology names.
Nasdaq futures gained 0.70%, while S&P 500 futures advanced 0.44%. The semiconductor sector also strengthened, with the iShares Semiconductor ETF (NASDAQ:SOXX) rising about 2% after posting a roughly 6% gain in the previous session.
The move follows last week’s sharp pullback in AI-related chip stocks. Micron shares fell 13.3% on Friday during a broader semiconductor sell-off after Broadcom Inc. (NASDAQ:AVGO) maintained, rather than raised, its long-term AI semiconductor revenue outlook.
Investor Sentiment And Re-Entry Watch
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.
The stock remains one of the market’s strongest momentum plays after a powerful rally over the past year, supported by growing demand for AI infrastructure and memory products.
Technical Picture Remains Bullish
Micron continues to trade in a strong long-term uptrend. 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.
The technical setup remains constructive, with the 20-day moving average above the 50-day moving average and the 50-day average above the 200-day average. This bullish alignment often signals sustained upward momentum.
However, momentum indicators suggest the rally may be cooling in the near term. The moving average convergence divergence, or MACD, remains below its signal line, indicating upside momentum has slowed following the recent surge.
Traders are likely to watch resistance near the stock’s 52-week high of $1,089.29. On the downside, the 20-day moving average around $859.94 remains the nearest major support level.
Micron Earnings Outlook In Focus
The next major catalyst is Micron’s scheduled earnings report on June 24.
Analysts expect earnings of $19.33 per share, up from $1.91 a year earlier. Revenue is projected to reach $33.9 billion, compared with $9.3 billion in the year-ago period.
The stock currently trades at about 44.8 times earnings, reflecting investors’ expectations for continued AI-driven growth.
Wall Street maintains a Buy consensus on the stock. Recent analyst actions include price forecast 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 customers across data centers, smartphones, consumer electronics, industrial markets and automotive applications.
Strong demand for AI servers and data center infrastructure has been a key driver of the company’s recent growth. As a result, investors continue to view Micron as a major beneficiary of the expanding AI ecosystem.
Micron Price Action
MU Stock Price Activity: Micron shares were up 3.9% at $986 in Tuesday’s premarket trading, according to Benzinga Pro data.
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