TRADE SETUP MU (MICRON TECHNOLOGY INC)

Where do we stand fundamentally?

Micron Technology (NASDAQ: MU), a leading memory and storage solutions provider, has been making waves recently, particularly following its fiscal second-quarter earnings release on March 20, 2025. The company reported stellar results that exceeded expectations, driving its stock price upward in after-hours trading. Revenue for the quarter rose 38% year-over-year to $8 billion, up from $5.82 billion in the same period last year. Net income hit $1.58 billion, or $1.41 per share, a significant jump from $793 million, or $0.71 per share, a year ago. Analysts had forecasted earnings of around $1.42 per share, and Micron delivered slightly below that but still impressed with its revenue beat.

The standout story is Micron’s data center business, where revenue tripled compared to last year, fueled by soaring demand for high-bandwidth memory (HBM) chips critical for AI applications. The company issued a third-quarter revenue forecast of approximately $8.8 billion, surpassing the average analyst estimate of $8.5 billion (per LSEG data). This optimism stems from robust AI-driven demand, with Micron’s HBM chips—used in AI data centers—completely sold out for 2025. CEO Sanjay Mehrotra highlighted this strength, noting that data center revenue is set to hit another record in the near term.

MU is testing the strong support of 90 and is bouncing from it by opening a new swing higher in the fifth wave. A break above 120 will accelerate the swing higher.

The indicated scenario above would be invalidated only in the case of a break below 86. A support for the extension higher is 95 and you can search to by dips in the case it happens.

_{I am taking a near-term long-trade entry with an SL below 86 to target 120 and possibly higher. You can also trade it with options by buying call options.}