Shares of Micron Technology (MU) are exploding higher on two key catalysts. One, it just started producing artificial intelligence semiconductors for Nvidia.
“AI workloads are heavily reliant on memory bandwidth and capacity, and Micron is very well-positioned to support the significant AI growth ahead through our industry-leading HBM3E and HBM4 roadmap,” Micron Chief Business Officer Sumit Sadana said in a news release.
Two, Goldman Sachs raised its price target to $112 from $103 a share, with a buy rating. All as Micron gets set to release its second quarter numbers on March 20 after closing bell. As noted by Investing.com, “The financial firm anticipates that Micron will surpass expectations for the second quarter, bolstered by strong pricing dynamics in both DRAM and NAND segments.”
Technically, we’d wait to buy Micron at the moment.
Even with Goldman Sachs’ bullish note, Micron is a bit overbought on RSI, MACD, and Williams’ %R. At the same time, it’s now trading a triple-top resistance dating back to early 2021, where it has pulled back multiple times.
Immediate-term, MU may be a good short. Longer-term, it could push aggressively higher on the artificial intelligence boom.
