Micron (MU) Stock Analysis: Key Levels to Watch Ahead of Earnings

As Micron Technology (NASDAQ: MU) prepares to release its earnings report tomorrow, investors are closely monitoring its stock performance. Micron shares are currently trading at $102.31, with analysts expecting an earnings per share (EPS) of $1.28 on revenue nearing $7.9 billion. This marks a significant year-over-year increase, suggesting that a strong earnings report could support the stock in the near term.

AI Demand and Market Sentiment Boost Micron’s Outlook

Micron’s competitors, Nvidia (NVDA) and Broadcom (AVGO), have reinforced the growing demand for AI-driven semiconductor solutions, which could positively reflect in Micron’s earnings results. However, potential medium-term risks remain, including:

• Tariff Wars: Ongoing trade tensions could impact supply chains and production costs.
• Semiconductor Subsidy Uncertainty: Former President Donald Trump has expressed interest in revoking the $52.7 billion CHIPS Act, which could weigh on Micron’s future growth prospects if enacted.

Technical Analysis: Key Support and Resistance Levels

From a technical standpoint, Micron’s stock has been trading sideways since August 2023, with notable consolidation since the beginning of this year. This earnings report could serve as a short-term catalyst, with key levels to watch:

• Resistance: $113–$114 – A breakout above this level could propel the stock towards $120 and beyond.
• Support: $84 – A break below this threshold may trigger increased selling pressure.

Additionally, the 100-day moving average has acted as strong support since December, making it a crucial indicator for Micron’s price stability heading into earnings.

Final Thoughts on Micron’s Earnings Report

Investors are eyeing Micron’s earnings performance to gauge whether the AI-driven semiconductor boom can sustain momentum. While short-term optimism remains, external geopolitical and policy risks could impact long-term growth potential.