/Micron%20Technology%20Inc_%20logo%20on%20building-by%20vzphotos%20vis%20iStock.jpg)
Boise, Idaho-based Micron Technology, Inc. (MU) designs, develops, manufactures, and sells memory and storage products in the United States and internationally. The company has a market capitalization of over $482.8 billion and operates through the Cloud Memory Business Unit, Core Data Center Business Unit, Mobile and Client Business Unit, and Automotive and Embedded Business Unit segments.
Companies with a market cap of $200 billion or more are typically referred to as "mega-cap stocks." MU firmly belongs in that category. With a market cap comfortably above this mark, MU stands as a powerhouse in the semiconductor industry, ranking among the top companies supplying products used in leading-edge computing, consumer, networking and mobile products.
However, the chip stock currently trades 5.8% below its 52-week high of $455.50 recorded on Jan. 30. MU has gained 91.1% over the past three months, notably outperforming the State Street SPDR S&P Semiconductor ETF’s (XSD) 17% rise during the same time frame.
In the longer term, MU has delivered a standout performance. The stock rallied 360.2% over the past 52 weeks, comfortably outpacing the 55.7% return of XSD over the same period.
MU has also shown steady bullish movement. The stock has traded above its 200-day and 50-day moving averages since last year, with a few fluctuations. This impressive momentum is a testament to the stock’s resilience and technical strength.
On Feb. 2, Micron's shares grew 5.7% following an industry-wide memory supply shortage and soaring demand for its chips. Owing to the rising needs of data center operators expanding their AI capabilities, the market has experienced a shortage of memory chips, pushing the price of dynamic random-access memory (DRAM) to its highest levels since 2019. Investor optimism in the stock grew as Micron is one of the top suppliers of high-bandwidth memory (HBM) products to AI companies, and rising demand for its products suggests strong market conditions.
When stacked against its rival, Advanced Micro Devices, Inc. (AMD) has climbed 102.8% over the past year, lagging behind MU’s strong rally.
Wall Street continues to favor the stock highly. Among the 42 analysts tracking MU, the overall consensus stands at a “Strong Buy.” While the chip stock currently trades above its mean price target of $350.45, the Street-high target of $500 suggest it could rally as much as 16.6%.
