Micron Falls 2%, Tests Support
$Micron Technology(MU)$ Drops -2.23%: Memory Giant Tests Support at $234, AI Infrastructure Demand Intact
Latest Close Data
MU closed at $234.16 on December 4th (ET), down -2.23% (-$5.33) from yesterday's $239.49.
The stock is now 10.1% below its 52-week high of $260.58, trading within a $228.09-$237.80 intraday range.
Core Market Drivers
Memory sector faces headwinds from broader semiconductor rotation and profit-taking after strong YTD gains. However, AI infrastructure demand remains robust with data center memory requirements continuing to expand. Recent institutional flow shows mixed signals with net inflow of $570M despite today's decline.
Micron Technology announced on Wednesday that it plans to stop selling storage products to individual consumers in the PC/DIY market so that the company can focus its production capacity on providing sufficient storage products for high-performance AI chip-driven computing clusters.
Micron's latest move highlights that the storage product sector, long considered the strongest profit driver, is shifting its pricing power from the PC/smartphone growth cycle to a "storage industry supercycle" dominated by large AI data centers. Driven by this bullish logic of the storage supercycle, Micron's stock price has surged approximately 175% year-to-date.
Technical Analysis
Volume at 19.19M shares (1.13x average) suggests moderate selling pressure.
MACD shows bearish divergence at -1.73 with DIF at 5.86 below DEA at 6.73.
RSI(12) cooled to 54.4 from overbought levels, indicating healthy consolidation.
KDJ signals remain bullish with K-line at 76.0.
Key Price Levels
Primary Support: $236.93 (December 2nd low)
Strong Resistance: $239.93 (recent pivot high)
Immediate Pivot: $234.16 (current close)
Valuation Perspective
Trading at 30.85x TTM P/E and 7.05x P/S ratio, MU remains reasonably valued compared to semiconductor peers.
Forward P/E of 14.04x reflects strong earnings growth expectations driven by AI memory demand recovery.
Analyst Targets
38 analysts maintain coverage with average target of $217.86 (range: $86.28-$338.00).
Strong institutional backing: 13 Strong Buy, 26 Buy, 4 Hold ratings show 86% bullish sentiment despite recent pullback.
Weekly Outlook
Expect consolidation between $230-$240 range as stock digests recent gains.
Break below $236 support could target $228 level, while reclaim of $240 resistance opens path toward $250+ zone.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
