Micron Technologies, Inc. (NASDAQ:MU) shares are trading higher Tuesday after dipping more than 5% in Monday's session. Here's a look at what's going on.
What To Know:
The intense growth in the semiconductor sector of early-2024 has cooled as investors grow impatient for returns on the massive capital expenditures involved with AI-infrastructure build-out. Micron's stock has lost more than $70 billion in market value since June, and Morgan Stanley lowered its price target from $140 to $100 on Monday.
Micron shares fell Monday after analysts noted early demand indicators for Apple Inc.'s (NASDAQ:AAPL) iPhone 16 series which utilize Micron memory chips appear softer relative to the pre-order demand for the iPhone 15 series.
What Else: Micron on Tuesday announced the availability of the Crucial P310 2280 Gen4 NVMe solid-state drive (SSD) which expands Micron's P310 portfolio to address PCs, laptops and PlayStation 5. The company said a version with a heatsink will be released in the coming months, suited for use with PlayStation 5 and desktop gaming PCs.
"Micron's Crucial P310 2280 SSD delivers blazing fast gaming-level speeds, allowing users to do it all faster — from gaming to booting Windows to running multiple creative apps at the same time — without compromising on quality," said Jonathan Weech, senior director of product marketing for Micron's Commercial Products Group.
MU Stock Prediction 2024:
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Micron Technology, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Micron Technology, the 200-day moving average sits at $104.81, according to Benzinga Pro, which is above the current price of $89.24. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
MU Price Action: According to Benzinga Pro, Micron Technologies shares are up 2.09% at $89.01 at the time of publication Tuesday.
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