What's Going On With Micron Stock Tuesday?

Micron Technology Inc (NASDAQ:MU) shares are trading lower Tuesday afternoon, even as another Wall Street firm boosted expectations for the memory maker. Here’s what investors need to know.

• Micron Technology stock is facing resistance. Why is MU stock trading lower?

Needham Sees Double-Digit Upside For Micron

Needham on Tuesday raised its price target on Micron to $450 from $380 while reiterating a Buy rating, implying about 11% upside from current levels.

The upward price revision adds to a bullish analyst drumbeat. Earlier this month Morgan Stanley moved its Micron target to $450 and kept an Overweight rating. Morgan Stanley cited firm demand for high-bandwidth memory and DRAM used in artificial-intelligence servers as cloud providers expand data-center spending.

Nvidia HBM4 Setback Still Weighs On Shares

Despite the upbeat analyst backdrop, investors remain focused on Micron's position in the race to supply memory for advanced AI processors. Recent reports indicated that Nvidia plans to source HBM4 chips for its forthcoming "Vera Rubin" accelerators primarily from SK Hynix and Samsung, leaving Micron out of the initial supplier lineup.

Analysts link the decision to tougher performance requirements from Nvidia, including higher data-transfer speeds that have narrowed the field of qualified vendors.

While Micron continues to benefit from strong pricing and long-term demand for AI memory, the recent HBM4 setback is tempering sentiment today, potentially helping explain why shares are edging lower even after another price target increase.

Micron Signals Mixed Momentum

Currently, Micron is trading 9.8% below its 20-day simple moving average (SMA) and 4.1% below its 100-day SMA, indicating short-term weakness while still maintaining some longer-term strength.

Shares have increased 281.61% over the past 12 months and are positioned closer to their 52-week highs than lows, suggesting a strong longer-term trend.

The RSI is at a neutral level, indicating that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $455.50
• Key Support: $364.00

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Micron Technology, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 31.39 — Trading at a steep premium relative to peers.
• Quality Rank: 97.64 — Balance sheet remains healthy.
• Momentum Rank: 99.33 — Stock is outperforming the broader market.

The Verdict: Micron Technology’s Benzinga Edge signal reveals strong momentum with a high score of 99.33, indicating robust performance. However, the value rank of 31.39 suggests that the stock may be trading at a premium, which could be a concern for value-focused investors.

Micron Earnings Surge Expected

Micron Technology is slated to provide its next financial update on March 19.

• EPS Estimate: $8.41 (Up from $1.56)
• Revenue Estimate: $18.87 billion (Up from $8.05 billion)
• Valuation: P/E of 39.1x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $387.92. Recent analyst moves include:

• Needham: Buy (Raises Target to $450.00) (Feb. 17)
• Morgan Stanley: Overweight (Raises Target to $450.00) (Feb. 11)
• Mizuho: Outperform (Raises Target to $480.00) (Jan. 27)

MU Shares Edge Lower Tuesday

MU Price Action: Micron Technology shares were down 1.69% at $404.70 at the time of publication on Tuesday, according to Benzinga Pro data.

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