Image Source: Unsplash

Micron stock price has staged a strong comeback in the past few months, moving from a low of $61.70 in April to $123.6 today. It has jumped to its highest point since July 2024, bringing its market capitalization to over $138 billion. So, is MU stock a good buy ahead of its earnings?

Micron stock price technical analysis as it gets highly overbought

The daily timeframe shows that the MU stock price bottomed at $61.7 in April to a high of $123.60 today. It has already moved above the 61.8% Fibonacci Retracement level at $120. 

Micron stock has also moved above the 50% Fibonacci Retracement level at $110, a bullish sign. Most importantly, it has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other.

The Average Directional Index (ADX) has jumped to 41, a sign that bulls are in control. Further, the Relative Strength Index (RSI) has jumped to the extreme overbought level of 80. 

Similarly, the Stochastic Oscillator and the MACD indicators have continued rising this year. Therefore, the most likely scenario is where the stock will bounce back and reach a high of $136, the 78.6% retracement point, which is 11% above the current level.

The other alternative is where the stock retreats to the support at $114, the highest point in September, October, and November last year. Such a move will point to more downside, potentially to the psychological point at $100.

(Click on image to enlarge)

MU stock price chart | Source: TradingView 

Micron Technology earnings ahead

The next major catalyst for the MU stock price will be its earnings, which are scheduled for Thursday this week. These numbers will provide more information about its growth trajectory and whether the momentum in the second quarter continued. 

The most recent quarterly results showed that Micron’s revenue rose to $8.05 billion in Q2’25, a big increase from the $5.82 billion it made in the same period last year. 

This growth happened as many large hyperscale companies like Amazon and Microsoft reiterated their capital expenditure spending, which is notable since many of them rely on Micron. 

As a result, Micron noted that it was already sold out of its high bandwidth memory (HBM), a business it expects will be worth over $35 billion. It is also seeing more demand for HBM for the next calendar year. 

The company is also pegging its growth trajectory to HBM4, which will ramp up next year. This project increases the bandwidth by over 60% compared to the current model. 

Micron’s business is being driven by AI and data center demand. Other segments like personal computers, mobile, and automobile are expected to record single-digit growth this year.

The average revenue estimate among Wall Street analysts is that its revenue will come in at $8.83 billion this quarter, up by 30% from a year earlier. 

Micron is then expected to make $9.87 billion this year, up by 27% from a year earlier. This growth will then lead to a 41% YoY annual growth to $35 billion, followed by 26% growth to $44.93 billion. 

Micron’s earnings per share (EPS) are expected to surge from 62 cents in Q3’24 to $1.59 in Q3’25. Its annual EPS will jump from $1.3 to $7. Micron has a long track record of beating analysts’ estimates, which explains why its results will be higher than expectations this year. 

Analyst have a bullish view on Micron, with those at Wells Fargo having an overweight rating. Wedbush and Mizuho have an outperform rating, while Citigroup and UBS have a buy rating. The average Micron stock price target is $126.35, slightly above the current $123.60.

More By This Author:

Platinum Prices Retreat From Decade-High Levels
Brent Crude Oil Price Forecast As Trump Bombs Iran
Tesla To Build China’s Largest Grid-Scale Battery Storage Facility