MU Stock Eyes Best Week In 8 Months On Strong Chip Earnings; Traders Await Dip To Buy

• MU stock is up about 20% this week.
• A number of retail traders on Stocktwits said they bought MU in Thursday’s dip.
• Recent results from Intel, AMD, Alphabet, Microsoft and Amazon reinforced that AI demand and data center buildouts remain strong, boding well for memory chipmakers.

Micron Technology, Inc. stock has gained nearly 20% so far this week, heading for its best weekly performance in about 8 months, powered by robust quarterly reports from semiconductor and cloud companies.

Micron itself reported its latest earnings on March 18, and its ongoing quarter ends at the end of May. 

Retail Traders Buy The Dip

MU stock gained nearly 2.8% in early premarket trading on Friday without a significant trigger. The ticker was trending among the top 10 on Stocktwits, with many traders claiming to load up more on the stock after its 3% fall on Thursday.

“$MU Added even more on this dip,” said a trader. Another wrote: “I think we get one more correction here then we head to 1000.”

Another trader speculated that “an announcement of stock split would send this to the moon.” On Stocktwits, the sentiment reamined ‘extremely bullish’ for a second straight day.

On Wednesday, Mizuho raised its price target on Micron to $740 from $545 and reiterated its ‘Outperform’ rating on the shares. The target implies a 12% upside from the stock’s last close.

Strong AI Signals All Around, A Boost For Memory Firms

In recent weeks, upbeat quarterly reports from chip giants Intel and Advanced Micro Devices, along with hyperscalers Alphabet, Microsoft, and Amazon, have reinforced that AI demand and data center buildouts remain on a sharp upward trajectory — a trend that bodes well for the memory chip sector.

Memory chip stocks have been on a roll for about a year as surging demand has driven shortages and price gains across the industry. While companies and analysts tracking them have indicated that memory demand will remain robust over the next few years, investors question how much further the stocks will run after already exceptional gains over the past year.

Micron shares have gained 127% and currently trade at a record high.

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