Micron Technology Inc. 25% Monday.
The previous session’s decline came amid a broader technology sell-off fueled by concerns over artificial intelligence spending. S.
stock futures weakened. 58%.
The stock is also consolidating after a sharp 12-month rally. As a result, Micron could remain sensitive to swings in technology and semiconductor stocks.
Memory Boom Could Have More Room To Run Despite the recent pressure on semiconductor stocks, Pella Funds CIO Jordan Cvetanovski told CNBC Tuesday that memory companies could continue performing well over the next one to two years. " He pointed to unusually high margins and industry returns as key supports.
That outlook is particularly relevant for Micron, whose business is heavily exposed to memory demand and pricing. However, Cvetanovski warned that strong profitability could eventually attract more investment and production capacity.
That additional supply could pressure memory prices and margins. He also highlighted heavy investor concentration in AI, semiconductors and related hardware.
A slowdown in data-center demand or a change in the AI investment narrative could therefore trigger a sharp reversal. AI Pullback Could Favor Software Cvetanovski said a downturn in AI hardware could drive investors toward software companies such as Microsoft Corp.
(NASDAQ:MSFT), Intuit Inc. (NASDAQ:INTU) and SAP SE (NYSE:SAP).
He still sees a need for AI data centers. " Pella has therefore moved away from what Cvetanovski called the "eye of the storm" in chips and memory.
Instead, the fund has maintained exposure to grid infrastructure and other businesses tied to the AI buildout. 58.
That puts the stock near intermediate-term support. 57.
Therefore, the longer-term trend remains bullish. 15.
That signals neutral momentum and suggests the stock is neither overbought nor oversold. The moving-average structure also remains constructive.
The 20-day SMA is above the 50-day SMA, while the 50-day SMA remains above the 200-day SMA. Key resistance sits near $1,012.
50 closely tracks the 100-day SMA and could serve as an important trend test. Earnings And Analyst Outlook Micron is scheduled to report earnings Sept.
30. 78 billion.
31 billion a year earlier. 74.
Mizuho maintained an Outperform rating on Aug. 25 but lowered its price forecast to $1,300.
New Street Research upgraded Micron to Buy on Aug. 14 with a $1,250 forecast.
Citigroup maintained a Buy rating on Aug. 7 while lowering its forecast to $1,150.
Benzinga Edge Rankings Micron scores strongly on several Benzinga Edge measures. 72.
59. Overall, the rankings point to a stock driven primarily by momentum, growth and quality rather than valuation.
Top ETF Exposure Micron has significant exposure through several exchange-traded funds. 67% of the SMART Earnings Growth 30 ETF (NYSE:SGRT).
Large inflows or outflows from these funds can therefore add to buying or selling pressure in Micron shares. 11 during premarket trading on Tuesday, according to Benzinga Pro data.
