- Micron stock price has soared to a record high, with its valuation hitting $1.2 trillion.
- The company will publish its financial results on Wednesday this week.
- Technicals and fundamentals suggest that Micron shares have more upside.
Micron stock price continued its strong bull run this year, reaching its highest level on record. MU jumped to $1,150, up 825% over the last 12 months, making it the 14th-largest company in the world with a market capitalization of over $1.2 trillion. This surge will either accelerate or reverse this week when the company publishes its financial results.
Micron Stock Braces For Earnings
Micron share price has soared in the past few years, helped by the ongoing demand for memory chips as the AI boom continues. This demand has accelerated as top companies like Microsoft, Meta Platforms, and Amazon boosted their capital expenditure plans for the year.
Micron has become a major player in the memory industry, providing DRAM and NAND solutions to companies like NVIDIA, Amazon, Alphabet, and Meta Platforms. It also supplies its products to companies such as Apple and Microsoft.
Micron largely competes with other companies like Samsung and SK Hynix, and has a 21st market share in the High Bandwidth Memory (HBM) industry. Indeed, Samsung and SK Hynix have all entered the $1 trillion club.
Analysts are optimistic that Micron’s business will continue doing well this year. Its results, which will be released on Friday, are expected to show that revenue soared 276% in the last quarter to $35 billion. It is expected to generate over $41.8 billion in the current quarter, with annual revenue of $113 billion. It is expected to make over $190 billion next year.
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Strong revenue growth and guidance will boost Micron’s stock and that of other companies in the industry. Besides, companies in the industry are among the top gainers this year. This includes companies like Seagate, Western Digital, and Kioxia.
On the other hand, a weak report will lead to a reversal among these companies and also the broader tech firms. We saw that recently, when the stock market retreated after the recent Oracle and Broadcom earnings.
Analysts are optimistic about the MU stock price. For example, Stifel analysts predict that it will jump to $1,500, while Wedbush, Deutsche Bank, and Cowen see it hitting $1,300, $1,500, and $1,500, respectively.
MU Stock Price Technical Analysis
The daily chart shows that the Micron share price has been in a strong uptrend in the past few months. It recently soared above the crucial resistance level at $1,087, invalidating the double-top pattern that was forming, with its neckline at $855.
The stock has remained above all moving averages, while the Relative Strength Index (RSI) has formed an ascending channel. Therefore, the path of the least resistance for the stock is bullish, with the next level to watch being at $1,200.
This view is justified, as the company remains a bargain despite the recent rally. It trades at a forward price-to-earnings ratio of 18, lower than the sector median of 33. It also has a Rule-of-40 multiple of 245%, making it one of the top bargains.
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