Micron Technology Inc. (NASDAQ:MU) stock rose nearly 1% in Wednesday premarket trading after falling 7.02% in the previous session. Nasdaq futures slipped 0.03%, while S&P 500 futures gained 0.01%.
Cathie Wood Warns Memory Boom May Not Last
Micron’s rebound follows Tuesday’s sharp selloff. However, comments from Ark Invest CEO Cathie Wood have put the durability of the memory-chip boom in focus.
Wood said she is avoiding memory-dependent AI chip stocks. She views soaring memory prices as a warning sign rather than an investment opportunity.
Wood called high-bandwidth memory the “most cyclical” and “most commoditized” part of the semiconductor supply chain. Instead, she favors AI chipmakers Cerebras Systems Inc. (NASDAQ:CBRS) and Groq, which she said do not require high-bandwidth memory.
Although Wood did not name Micron, the company is one of the world’s largest DRAM manufacturers. Wood argued that unusually high memory prices could encourage the semiconductor industry to engineer around the bottleneck.
However, Micron has positioned memory as a critical part of the AI buildout. In June, CEO Sanjay Mehrotra called memory a “strategic asset” in the AI era. The company has also signed 16 long-term customer agreements representing about $100 billion in cumulative revenue through 2030.
Technical Analysis
Micron is trading about 5.6% above its 20-day simple moving average of $895.86. However, it remains about 1.7% below its 50-day SMA of $962.57.
The stock remains well above its 100-day SMA of $789.96 and 200-day SMA of $560.12. That keeps its longer-term trend bullish despite recent volatility.
Meanwhile, Micron’s relative strength index stands at 52.61, signaling neutral momentum.
Traders may watch $1,012 as resistance. On the downside, $891.50 could provide support near the 20-day moving average.
Earnings And Analyst Outlook
Micron’s next earnings report is estimated for Sept. 22, 2026. Analysts expect earnings of $31.27 per share, up from $3.03 a year earlier. Revenue is expected to reach $50.81 billion, up from $11.31 billion.
Micron carries a Buy consensus rating with an average price forecast of $1,537.50.
Citigroup maintained a Buy rating on Aug. 7 but lowered its price forecast to $1,150. KeyBanc maintained an Overweight rating and raised its forecast to $1,750 on July 14. Cantor Fitzgerald maintained an Overweight rating and raised its forecast to $2,000 on June 29.
Benzinga Edge Rankings
Micron’s Benzinga Edge rankings show strong Momentum, Growth and Quality scores.
The stock has a Momentum score of 99.61, Growth score of 92.72 and Quality score of 97.37. However, its Value score stands at 30.46.
MU Price Action
Micron shares rose 0.66% to $947 in Wednesday premarket trading, according to Benzinga Pro.
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