Micron Stock Closes Volatile Week But Still Is Near A Buy Point

Micron (MU) stock had a volatile week, as the computer data storage play broke out from a base and pulled back to test support all within a few days — all while digesting powerful second-quarter earnings. Shares remain near a buy point, making Micron this week’s Big Cap 20 stock to watch.

Memory-chip maker Micron’s massive beat-and-raise earnings report wowed investors this week but Wall Street still took profits and sent shares lower after the report.

Most impressively, the stock has catapulted 592% since hitting April 2025 lows.

Micron makes two main types of memory chips: DRAM and NAND. DRAM chips, or dynamic random-access memory, act as the main memory in PCs, servers and other devices, working closely with processors. NAND flash chips provide longer-term data storage.

Memory A Key Asset

In the artificial intelligence era, memory has become a key asset, and memory-chip makers like Micron are supporting the growing demand. In the company’s second-quarter results, AI-driven demand and structural supply tightness helped drive pricing power beyond expectations.

Micron reported earnings up 682% year over year to an adjusted $12.20 a share for the quarter. Revenue soared 196% to $23.86 billion and growth accelerated for the third straight quarter.

It was the company’s fifth consecutive quarter of triple-digit percentage gains in earnings. Analysts see such profit gains continuing for three more quarters.

For the current fiscal third quarter, Micron predicts adjusted earnings of $19.15 a share, up 903%, on sales of $33.5 billion, up 260%.

Micron Stock Holds Near Buy Point

On Friday, Micron shares pulled back nearly 3% after a drop of roughly 3.7% on Thursday following earnings. Shares had been trading within the 5% buy zone of a 455.50 consolidation entry. The initial breakout occurred on Tuesday.

This recent consolidation with a 21% depth occurred after a 254% run from the prior cup-with-handle base breakout that occurred last September. That stage-one base was formed over the course of nine weeks from July through August.

Investors should be aware of Friday’s action that showed the stock getting support at its conjoined 10-day and 21-day lines. This is a sign of strength as many stocks are pulling back below these support levels in the current volatile market.

Micron’s relative strength line remains at highs, indicating it’s outperforming the overall market. A top-shelf 99 IBD Composite Rating means this stock is one to watch. The stock also has a solid Earnings Per Share Rating of 82.

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