Micron Technology Inc. (MU Stock)

Boise, Idaho-based Micron Technology Inc. (NASDAQ: MU) designs, manufactures, and sells memory and storage-focused microchip products worldwide. Micron Technology will invest around 500 Billion yen ($3.70 Billion) in developing EUV technology in Japan. The Japanese government is trying to revive its chip-making sector as its world share dropped from 50% in the 1980s to 10% today.

Micron Technology – The Microchip Company Helping Japan

Micron operates in 17 countries with 11 manufacturing sites; the company operates through 4 sectors: computer & networking, mobile, embedded technology, and storage. The latest extreme ultraviolet (EUV) technology would be used to make 1-gamma chips to mass produce material required for complex applications like AI and image processing. 

Japanese Prime Minister Funio Kishida expects additional investment from global chipmakers in Japan. He met with top executives on May 18, 2023, ahead of the G7 summit. The list of executives included those from Intel Corp, Taiwan Semiconductor Manufacturing Co., Micron Technology, Applied Materials, IBM Corp., Samsung Electronics, etc.

Japan is trying to revive its chip sector, and the U.S. is strengthening forces with its allies to counter China’s chips and advanced technology developments. 

At press time, NASDAQ: MU stock was trading at $64.92, a hike of 1.87% in the last 24 hours. Previous close and open were at $63.73 and $64.58, respectively. With an average volume of 15.82 Million shares, the market cap is $71.048 Billion. Analysts gave a 2.71 rating for moderate buy, placing the price target at $69.59 with a 7.2% upside. 

The 52-week change from its high of $75.41 is a drop of 6.46%. Also, concerning Q1 2023 data, the year-on-year (Year-on-Year) changes are as follows. Revenue dropped 52.57%, with a YoY of $3.69 Billion, and currently standing at $23.06B (it). Revenue per share was $21.00, and the quarterly revenue growth fell by 52.60%. 

Operating margin increased by 9.00% (ttm); compared to Q1 2022, it dropped by 10.13% to $1.01 Billion. Net income declined by 202.17% to negative $2.31 Billion, while net profit margin fell by 315.42% from minus $62.60. Total cash in hand is $10.82 Billion, and debt is $12.94 Billion. The P/E ratio is overvalued at 46.63. 

The last earnings were reported on March 28, 2023, with reported revenue of $3.693 Billion. However, it was estimated to be $3.714 Billion, making a surprise of negative $21.226 Million and a drop of 0.57%. The subsequent earnings will be released on June 29, 2023, with estimated revenue of $3.693 Billion. 

Micron Technology Inc. (NASDAQ: MU) – Candle Exploration

The current MU stock price coincides with its crucial resistance, a point with the price actions that have been trying to break for quite some time. The upward-sloping trend line and higher highs made in the process indicate that the price could break out the resistance. If so, then the price could go on to touch its yearly high of $75.41. 

There is also the possibility of breaking R1 and moving towards R2, but it would depend on certain variables. The price is above EMA; if it breaks down, the moving average will act as a barrier to the price before entering the demand zone. 

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)