Micron earnings: Will AI growth offset ‘choppy’ memory market? – Micron Technology (NASDAQ:MU)

Micron Technology Inc MU heads into its first-quarter earnings announcement with a mix of optimism and caution.

Seam Jake SilvermanBloomberg Intelligence Semiconductor Analyst puts it, “unbroken quarters ahead for NAND” could pose a challenge with pricing and inventory pressures in the smartphone and PC markets.

However, the analyst also highlights AI-related applications as a potential offset, giving Micron a chance to weather the storm.

Also Read: How to Make $500 a Month from Micron Stock Ahead of Q1 Earnings

Currently trading at $110.93, Micron’s stock is showing bullish signs across key technical indicators.

Chart created using Benzinga Pro

It is well above the short- and medium-term moving averages, with the eight-day simple moving average (SMA) at $103.94, the 20-day SMA at $102.07, and the 50-day SMA at $104.07.

Moving Average Convergence Divergence (MACD) of 1.15 also suggests that momentum is on the side of the bulls.

However, the 200-day SMA of $110.93 coincides with price remaining a barrier, signaling a potential resistance level.

The market will be laser-focused on how Micron balances the dynamics of two diverging forces:

1. NAND Weakness: Increased inventories and price pressure.
2. AI capabilities: As Silverman notes, secular growth in AI applications could provide a much-needed boost, potentially offsetting the broader NAND market challenges.

Analysts estimate EPS of $1.76 and revenue of $8.72 billion. But beyond these numbers, investors will examine the company’s direction. Can Micron maintain its AI-driven growth momentum, or will “choppy quarters” in NAND drag it down?

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