MU: The Single Biggest Driver of the Recent Rally
$Micron Technology(MU)$ lost $350B in market cap in a week, then made half of it back in two days
$Micron Technology(MU)$ is right outside of 1000, up almost 200 pts after a violent backtest of 800. Through 1000 and $Micron Technology(MU)$ can quickly retest ATHs, through ATHs and it'll gravitate towards 1500. 845 and 800 absolutely need to hold, otherwise $Micron Technology(MU)$ can see a flush towards 650
Key Catalysts
Memory price shock: Morgan Stanley now sees Q3 memory prices rising 25% from Q2 on AI-driven shortages, the single biggest driver of the recent rally
HBM sold out through 2027:
$Micron Technology(MU)$ has locked in production volumes two years out, shifting power from competing on share to negotiating on price with hyperscalers.
Buyback math: UBS projects up to $400B in free cash flow through 2028, enough to retire roughly 40% of shares outstanding if management chooses to deploy it that way
1000 is the key inflection point for the move back to ATHs and towards $1.5T MCAP at 1327. Through 1327 and buyers will quickly push $Micron Technology(MU)$ towards 1500.
Trade Ideas
MU over 1000
Day Trade: 7/24 1000C
Swing Trade: 8/21 1300C
Last week's selloff was a sentiment problem, not a demand problem. The chips are still sold out.
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