Micron Stock Clears Key Resistance as Analysts Predict 352% Revenue Surge

Micron Technology (NASDAQ: MU ) stock has soared, crossing the key resistance level of $1,040 and continuing a recovery that started when it bottomed at $737. This recovery will now be tested when the company releases its fourth-quarter results on September 29. Analysts Predict Micron Revenue Surge Micron Technology, the third-biggest company in the high-bandwidth memory (HBM) industry, will be in the spotlight when it releases its financial results. These numbers come as the artificial intelligence boom continues, with companies like Microsoft and Amazon boosting their spending.

In a recent statement, Nvidia (NASDAQ: NVDA ) CEO Jensen Huang predicted that AI spending will hit $4 trillion in 2030. Micron stands to benefit from all this because of its role in the HBM industry, where it provides its products to the biggest companies globally. Read Also: Nvidia GPU Demand Is So Extreme, Even Bad Cloud Infrastructure Is Selling, SemiAnalysis Says In the last earnings report, Micron predicted that its fourth-quarter revenue will jump to $50 billion. 24 billion, up by 352% from the same period last year.

If this is correct, its annual revenue will be $130 billion, a big increase from the $37 billion it made in the last fiscal year. Historically, Micron and other top names in the tech industry have done better than expectations, meaning that its real figure may even cross $55 billion. 6, up from $3 in the same quarter last year. Investors will also look at its gross margins, which the company expects to cross 84%.

Also, they will focus on its forward guidance on revenues, earnings, and margins. These numbers come at a time when Micron is highly undervalued. For example, it trades with a forward price-to-earnings ratio of 14, lower than the sector median of 23, and the five-year average of 74. Micron Stock Has Crossed a Key Resistance MU stock chart | Source: TradingView The daily chart shows that Micron has rebounded from a low of $737 in August to $1,082.

Notably, it moved above the important resistance level of $1,040, its highest level on July 9, August 17, and September 8. This resistance was the upper side of the ascending triangle pattern. Notably, after crossing that price, it retested it again, completing a break-and-retest pattern. It has also remained above the 50-day Exponential Moving Average (EMA), while top oscillators have continued rising.

Therefore, the stock will likely continue rising as bulls target the all-time high of $1,255. This bullish outlook is in line with what most analysts expect. data shows that the average MU stock forecast among analysts is $1,336. Read Also: SK Hynix's Solidigm Eyes 2027 IPO at up to $150 Billion Valuation, in Potential Record-Breaking US Chip Listing: Report Image: Shutterstock