Analysis of MU Shares Following Earnings Report

Memory chip manufacturer Micron Technology (MU) published a positive financial report for Q4 of fiscal year 2025 on 23 September:

→ Q4 Revenue: Actual = $11.32 billion, up 46% compared with the same period last year.
→ Adjusted Earnings Per Share (EPS): Actual = $3.03 (analysts’ expectations = $2.87).

The main driver behind these strong results was heightened demand for high-performance memory needed for data centres and AI model training. Micron also published an optimistic outlook, forecasting revenue of between $12.2 billion and $12.8 billion in the next quarter.

Despite strong results and guidance, the share price reaction in the first week after publication has been moderate. Trading volumes were significantly above average, yet the price did not rise. Why?

1 → It is worth noting that Micron shares have nearly doubled in value since the start of 2025, which may indicate “bull fatigue.”

2 → A significant portion of the positive expectations tied to the AI boom is already priced into the current valuation.

Technical analysis shows more bearish signals.

Technical Analysis of MU Shares

Since early April, Micron shares have shown staggering growth of approximately 150%, with:

→ Price fluctuations forming an ascending channel (shown in blue). After breaking through the key resistance level at $130 in early September, the price rose towards the upper boundary of the channel, which now acts as resistance.

→ During this rise, the price exceeded the previous all-time high; however, further progress has clearly slowed. It is possible that the news of the record high, combined with a strong earnings report, created a buying frenzy that allowed large shareholders to take profits, thereby placing pressure on the price.

From a bullish perspective, the chart shows a correction pattern in the form of a “bull flag” (marked in red), suggesting a potential breakout and continuation of growth.

However, given the above, there are grounds to expect a deeper correction — for example, towards the median of the current channel, supported by a wide $135–150 zone (marked in purple), where the price previously rose particularly quickly, highlighting an imbalance in favour of buyers.

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