Micron Technology (MU) is the first semiconductor company to sample and validate the fastest, most advanced mobile memory in the industry. And as its turbocharged memory drives 5G and artificial intelligence (AI) innovations for smartphones, MU stock earns a spot on the IBD Breakout Stocks Index.
XMicron reports numbers for the November-ended first quarter of fiscal 2022 on Dec. 20. Micron's fiscal year ends in August.
While in different industry groups, MU stock joins fellow semiconductor industry stocks Applied Materials (AMAT), Teradyne (TER) and Rambus (RMBS) on the index.
Among leaders within Micron's data storage industry, MU stock ties Silicon Motion Technology (SIMO) and Smart Globabl (SGH) with a 96 Composite Rating. Pure Storage (PSTG) leads the group with the highest-possible 99 Composite Rating. And with a 95 rating, Seagate Technology (STX) also scores a strong rating in Stock Checkup.
See Who Joins MU Stock On The IBD Breakout Stocks Index
Micron Powers 5G, AI Advances — And Triple-Digit Earnings Growth
Based in Boise, Idaho, Micron makes memory and storage solutions that enable advances in AI and 5G applications. The company's portfolio includes high-performance DRAM, NAND and NOR memory and storage products.
On Nov. 19, Micron and MediaTek announced that they are the first to validate Micron's low-power double data rate 5X (LPDDR5X) DRAM. Standing for Dynamic Random Access Memory, Micron's DRAM is used for MediaTek's new Dimensity 9000 5G flagship chipset for smartphones. Built on Micron's leading 1α node, it marks the world's fastest mobile memory.
Micron's innovations in the AI and 5G spaces have driven solid signs of institutional support, including an A Accumulation/Distribution Rating and a 1.4 up/down volume ratio. Plus, 149 top mutual funds with an A+ rating from IBD have reported a position in MU stock.
Three straight quarters of triple-digit earnings growth has also attracted leading money managers. Analysts expect Micron to report 169% EPS growth on Dec. 20 and a 45% increase for the full fiscal year ending in August 2022.
Sales growth has ranged from 30% to 37% over the past three quarters.
Can MU Stock Buck Stock Market Pressure And Keep Climbing?
After hitting a new high in April, Micron began pulling back to form its current chart pattern. As it slid lower, MU stock continually hit resistance at its downward-sloping 10-week moving average. Along the way, that benchmark 10-week line undercut the 40-week moving average.
While the 10-week line has begun to climb higher, it remains below the 40-week moving average. Although Micron now faces downward pressure in the stock market indexes, look for the shorter-term 10-week line to move back above the longer-term 40-week line to confirm rebounding technical strength.
With the market hitting turbulence and Micron due to report on Dec. 20, the target buy point is 97.06. See if the market indexes can shake off recent selling pressure and set the stage for MU stock to break out on a strong earnings report.
On Wednesday, Micron jumped over 5% before retreating to settle for a 2% gain. Volume was well above average, but showed selling at the end of the session.
The Nasdaq and S&P 500 showed similar action as they pulled back to test their 50-day lines.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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