Micron Technology – Chart Analysis – Week Ahead

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Check out this week’s trading idea below, from your friendly neighborhood market analyst!

Trading idea of ​​the week

NYSE:MU – Micron Technology Inc – BULLISH BIAS

  • Key levels on the chart – consider taking trades from key support/resistance areas.
  • Micron has encountered some difficulties in recent quarters. In what can best be described as an imperfect storm for the RAM and data storage chip vendor, the company’s revenue, gross margin and profit margin all declined as the company continued to grapple with an increase in operating expenses.
  • EPS fell significantly, with the company posting earnings per share of just $1.35, well below the $2.34 it posted in the prior quarter or the $2.39 it posted in the same quarter last year.
  • To address some of these factors, the company has made significant capital expenditure cuts, which are expected to fall by 30% to approximately US$8 billion. These cuts are expected to negatively impact current year costs, but should improve their economics in due course, as they will bring supply and inventory closer to industry demand.
  • While Micron’s end consumers, both in the commercial and retail sense, are struggling, with declining consumer PC demand and commercial data center demand due to supply constraints, improving supply conditions will help improve Micron’s position.

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