Micron Technology Inc shares surged 3.8% to close at another new high of $286.68 on Wednesday before pulling back slightly. Investors continue to rally around the semiconductor giant's blockbuster first-quarter earnings released last week. Here’s what investors need to know.
What To Know: Trading up over 220% year-to-date as of Christmas Eve, Micron's momentum is fueled by an outlook that shattered Wall Street expectations.
The company last week reported first-quarter revenue of $13.64 billion and adjusted earnings of $4.78 per share, widely beating analyst estimates. The main catalyst for the 2025 surge is Micron's role in the infrastructure of artificial intelligence.
Micron has emerged as a critical bottleneck-buster for the future of AI. As large language models grow exponentially, they require massive datasets to be stored closer to the processor for instant access.
Traditional memory is too slow for this task. Micron's High-Bandwidth Memory (HBM) technology stacks memory chips vertically to dramatically increase data transfer speeds, acting as the high-octane fuel required by the GPUs training generative AI.
Management explicitly linked this architecture to future growth, projecting the HBM market will expand at a 40% compound annual rate, growing from roughly $35 billion in 2025 to $100 billion by 2028.
CEO Sanjay Mehrotra stated the company expects record highs in revenue and margins for fiscal 2026, guiding for $18.7 billion in second-quarter revenue alone.
Wall Street has responded aggressively to this AI-centric pivot. Rosenblatt Securities notably hiked their price target to a Street-high $500, cementing Micron's status not just as a chipmaker, but as a foundational pillar of the AI economy.
Benzinga Edge Rankings: Reflecting this powerful bullish sentiment, Benzinga Edge data highlights a near-perfect Momentum score of 97.84, signaling exceptionally strong market enthusiasm relative to its peers.
With the stock trading significantly above its previous highs, it is essential to identify key support and resistance levels. The recent high of $289.30 may act as a resistance point, where profit-taking could occur.
Conversely, the area around $278.00 could serve as a support level, where buyers may re-enter the market if the price retraces.