tech
This chip play’s strong 2025 run could hit a speed bump as earnings loom, charts show
Micron is toting a sizable gain on a year-to-date basis as its earnings release approaches, but that momentum may not last.
TL;DR
- Micron (MU) stock is up nearly 180% year to date and recently hit a new 52-week high.
- Despite strong fundamentals, including record revenue and margin improvement, the stock has fallen after its last four earnings reports.
- Market sentiment has soured on tech stocks due to distrust in capex spending and debt issuance, impacting companies like Meta and Oracle.
- Peer semiconductor companies Nvidia and Broadcom also saw their stock prices reverse after solid earnings reports.
- Technical analysis indicates Micron's stock is overextended, losing momentum, and showing bearish divergence on its relative strength index.
- Key technical levels to watch include the 50-day moving average at $224 and a potential drop to $200.
- The current risk/reward favors taking profits and avoiding the earnings report.