TLDR
- Micron stock rose 2.2% to $904.21 in Monday premarket trading.
- The stock is down 17% over the past month through Friday’s close.
- Nasdaq 100 futures gained 0.9% despite weak results from rival Kioxia.
- Chamath Palihapitiya questioned whether the memory boom can last.
- Apple earnings, the midterm elections and Friday’s jobs report loom this week.
Micron stock rose 2.2% to $904.21 in Monday premarket trading. The move came ahead of the opening bell.
Benzinga data showed a price of $905.49, up 2.35%, in the same session. It is a small bounce after a rough month.
The stock fell 2.1% last week. Through Friday’s close, it was down 17% over the past month.
There was no clear catalyst. A broader market rebound helped investors look past weak results from Japanese rival Kioxia.
Nasdaq 100 futures advanced 0.9%, and S&P 500 futures gained 0.57%. Marvell and Sandisk also traded higher before the bell.
Micron has been consolidating after a strong 12-month rally. That makes the stock sensitive to shifts in investor mood.
Valuation and Spending Worries
Micron looks cheap on one measure. It trades at about five times expected earnings for the current fiscal year.
The company has an 87% margin as AI data-center buildouts drive up memory-chip demand. Investors still worry about how long that spending will last.
Some question whether Alphabet and Amazon will keep paying for the AI buildout while their older businesses struggle. That doubt has weighed on the stock.
Chamath Palihapitiya, founder of Social Capital, also raised concerns. He asked if the memory industry’s profit growth can continue.
He pointed to Micron’s fiscal 2026 revenue of $133.2 billion, up from $37.4 billion in fiscal 2025. GAAP gross margin hit 80.7%, versus negative 9% in fiscal 2023.
He warned that new capacity could hurt profits. Memory makers are building factories, with added supply expected between 2027 and 2029.
He also flagged China’s CXMT, whose global DRAM revenue share reportedly rose from 4% to 10% in a year. He asked if AI has changed the memory business or if rising inventories could trigger another downturn.
Technical Picture and Analyst Views
Micron trades about 21% above its 200-day moving average of $746.83. It sits 4.7% below its 20-day average of $950.61 and 7.4% below its 50-day average of $978.71.
The MACD remains below its signal line, and the histogram is negative. That points to fading buying pressure.
Resistance sits at $1,042.50, with support near $902.50. The 52-week range runs from $192.59 to $1,255.
Analysts rate the stock a consensus Buy, with an average price forecast of $1,622.38. Rosenblatt kept its Buy and $1,900 target on Oct. 22, and Needham reiterated its Buy and $1,650 target the same day.
Three tests face the market this week: Apple earnings, the midterm elections and Friday’s jobs report.
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