TLDR
- Micron stock rose about 2% to roughly $904 in Monday premarket trading.
- The stock is down 17% over the past month through Friday’s close.
- Nasdaq 100 futures gained 0.9% while rival Kioxia posted weak results.
- Chamath Palihapitiya questioned whether the memory boom can last.
- Apple earnings, midterm elections and Friday’s jobs report loom this week.
Micron stock was moving higher in Monday premarket trading. It rose 2.2% to $904.21 ahead of the opening bell.
Benzinga data showed the stock at $905.49, up 2.35%, in the same session. That is a small bounce after a rough stretch.
The stock fell 2.1% last week. Through Friday’s close, it was down 17% over the past month.
There was no clear catalyst for the move. A broader market rebound helped investors look past weak results from Japanese rival Kioxia.
Nasdaq 100 futures advanced 0.9%. S&P 500 futures added 0.57%.
Other AI names also rose before the bell. Marvell and Sandisk both traded higher.
The chipmaker has been consolidating after a strong 12-month rally. That makes the stock sensitive to swings 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 also has an 87% margin. AI data-center buildouts have pushed up demand for memory chips.
Investors still worry about AI spending. Some question whether Big Tech firms like Alphabet and Amazon will keep paying for the buildout while their older businesses struggle.
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. That is up from $37.4 billion in fiscal 2025.
Its GAAP gross margin hit 80.7%. In fiscal 2023, it was negative 9%.
Palihapitiya warned that new production capacity could hurt profits. Memory makers are building factories, with added capacity expected between 2027 and 2029.
Technical Picture and Analyst Views
He also noted rising competition from China’s CXMT. Its global DRAM revenue share reportedly rose from 4% to 10% in a year.
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 indicator remains below its signal line. The histogram is negative, which 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.
The market faces three tests this week. Apple earnings, the midterm elections and Friday’s jobs report are all on deck.
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