On Wednesday, Micron Technology released its quarterly earnings report after the main trading session closed. The results aligned closely with analysts' expectations: earnings per share came in at $1.79, slightly above the forecast of $1.76, while revenue met projections at $8.71 billion.

Despite meeting estimates, the chipmaker issued a disappointing forecast for the next quarter, citing weak demand for personal computers (PCs) and smartphones. This overshadowed positive projections for the growth of the artificial intelligence (AI) chip market. Morningstar analyst William Kerwin warned of a potential "significant decline" in revenue from chips used in smartphones and PCs in 2025, driven by challenging market conditions.

As a result, Micron Technology's stock opened Thursday's session with a significant bearish gap and continued to slide throughout the day, closing 16% lower than Wednesday's closing price.

The chart of Micron Technology shares reveals bearish signals, as the price has broken below the support line of the long-term upward channel defined by key reversal points.

Currently, the stock is hovering around the $85.50 support level, which successfully halted the bearish momentum in August and September. However, with market sentiment dampened by Jerome Powell’s cautious comments about the pace of rate cuts in 2025, MU shares may face further downside. If this happens, the downward channel (highlighted in red) could become the dominant trend.

Analysts remain optimistic despite recent developments. According to TipRanks:
→ 23 out of 24 analysts recommend buying MU stock.
→ The average 12-month price target is $153.05.

That said, if the stock continues to deviate from the blue upward channel, analysts may adjust their price targets downwards to reflect the changing outlook.

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