Micron Technology Shows Strong Technical Momentum with Potential for Further Gains Amid Earnings Ahead

Technical Analysis

Micron Technology (MU) closed at $102.25 on June 3, 2025, up 4.15% from the prior session, demonstrating renewed buying interest after retesting support at $96.94. The stock traded within an intraday range of $96.96 to $102.93, remaining close to the key resistance near $103. The RSI at 61 indicates moderately bullish momentum without being overbought, and the MACD shows a positive reading of 8.48, supporting a continuation of upward momentum in the near term. Price remains above the 50-day moving average ($84.26) and the 200-day moving average ($95.05), confirming a medium- and long-term uptrend. The ATR of 3.85 suggests moderate volatility. A prudent stop-loss level could be set around $98.38 to limit downside risk.

For the next trading day (June 4, 2025), the technical setup favors a test of resistance at $103. Breaching this level could accelerate gains toward intermediate targets near $112 to $125, aligned with analyst consensus targets. Over the upcoming week, sustained volume around the average of 23.50 million shares will be critical for confirming the breakout. The immediate support band near $96.94 provides a floor amid profit-taking or pullbacks.

Fundamental Analysis

Micron's latest earnings announcement is due June 25, 2025, with expectations of robust revenue growth (~30% YoY to $8.83 billion) and strong EPS expansion to $1.59 from $0.62 last year, reflecting powerful operational leverage and improving margins. The trailing twelve months EPS stands at $4.18, yielding a current P/E ratio of 24.46, which is reasonable considering the industry’s cyclical nature and company growth prospects.

Micron’s strategic positioning in AI memory — highlighted by a breakthrough $1 billion HBM (High Bandwidth Memory) quarterly revenue with rapid QoQ growth and full supply commitments through 2025 — indicates a durable competitive advantage. The expanded total addressable market (TAM) for HBM to over $35 billion showcases strong demand driven by accelerating AI server deployments. Additionally, the launch of the first 1γ node-based LPDDR5X memory with industry-leading speed and power efficiency positions Micron to capitalize on the smartphone AI market.

On valuation, the company's discounted cash flow (DCF) model yields a negative figure (-25.48), which may reflect conservative assumptions or transitional capital expenditures related to new technology ramps. Analyst consensus target prices cluster between $112 and $140, with a median of $125, suggesting upside potential from current levels.

Intrinsic Value and Long-Term Investment Potential

Considering Micron’s P/E ratio relative to earnings growth prospects, strong product innovation pipeline, and leadership in expanding AI memory markets, intrinsic value likely exceeds the current market price. Despite the DCF negativity, which might incorporate cautious future cash flow estimates amid capital intensity and industry cyclicality, Micron’s expanding penetration in high-growth AI segments and continued benchmarking against competitors underpin a positive long-term fundamental outlook.

The technical upward trend and solid earnings growth reinforce the view that this stock is positioned for multi-quarter appreciation. The combination of secular AI demand tailwinds and Micron’s technology roadmap supports potential intrinsic value appreciation beyond the current $102.25 price, validating its long-term investment appeal.

Overall Evaluation

MU stock exhibits strong technical momentum, improving fundamentals, and robust growth drivers linked to AI memory and mobile AI applications. The stock trades near technical resistance with room to rally toward analyst price targets in the $112-$125 range. Near-term risks include earnings volatility typical of the semiconductor sector and potentially conservative market sentiment leading up to the June 25 earnings release.

Classifying MU as a Buy candidate reflects its attractive risk/reward profile driven by accelerating revenue growth, product innovation, and favorable market positioning. The absence of sell or strong sell signals from analysts combined with a majority buy consensus (54 buys, 8 holds) and zero sells further supports this view. Key trigger points to monitor include the upcoming earnings announcement and the ability to sustain momentum above resistance levels.