Micron Technology Earnings Will Test the Recent Chip Rally

Micron Technology’s earnings, released on Wednesday, are potentially poised to influence the chip market. Investors eagerly anticipate an AI-related boost for the chipmaker.

MU-–-Daily-ChartMU – Daily Chart

The price of MU shares has found support at a gap open earlier in June. A similar resistance zone exists between the $147.85 and $151.87 levels. Support comes in at the $130.58 level, a previous resistance from April.

Rosenblatt analyst Hans Mosesmann, expressing a bullish sentiment, has set a price target of $ 225 for the tech company, further bolstering investor confidence.

Mosesmann said that Micron should beat earnings estimates this time around as it enters a significant cycle for memory demand. Artificial intelligence is expected to boost PC demand. At the same time, its High-bandwidth memory (HBM) segment should also increase the stock’s performance. Mosesmann added that the industry’s HBM supply picture will be critical to monitor, and demand issues could continue well into calendar 2025.

Micron’s earnings will be necessary for chip stocks after the company soared to a new all-time high of $157.54. Micron and other chip names were embarking on an AI-led surge in market leader Nvidia, and any clouds over the picture at Micron could affect other names and the overall Nasdaq tech index.

Rosenblatt’s Mosesmann expects revenue and adjusted EPS of $6.60 billion and $0.44 for the third quarter, which aligns with the recently updated guidance. The company’s shares have surged by 66% this year. However, there are concerns after an April Taiwan earthquake, and Micron didn’t positively pre announce results.

However, Cantor Fitzgerald analyst C.J. Muse told clients not to “overthink it” as he raised his price target on the stock to $180.

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