Micron Technology Stock Is Surging Friday: What's Going On?

Micron Technology Inc. (NASDAQ:MU) stock rebounded nearly 8% in Friday’s premarket trading as investors weighed strong memory-chip prices against concerns about slowing AI infrastructure spending.

S&P 500 futures rose 0.3% after a sharp selloff in semiconductor stocks following the U.S. midterm elections.

Micron Rebounds After 17% Selloff

Micron shares plunged 17% Thursday as investors pulled back from AI-linked chip stocks.

The decline reflected concerns that tighter scrutiny of data-center construction could slow demand for memory chips, GPUs and servers.

However, strong memory pricing continues to support the industry’s outlook.

Counterpoint Research reported that global DRAM revenue surged 369% year over year in the third quarter. Meanwhile, bit shipments increased just 4% sequentially.

The figures suggest pricing, rather than shipment growth, remains a major revenue driver.

Wall Street Divided On AI Chip Outlook

Raymond James Chief Investment Officer Larry Adam remains bullish on AI infrastructure despite the selloff.

Adam said some semiconductor and AI stocks trade at roughly 30% discounts to historical valuations. He also expects earnings growth to remain healthy.

As a result, he favors gradually rebuilding exposure to technology and semiconductor stocks.

However, Dan Ives of Yorkville Ives has turned more cautious.

Ives now expects 10% fewer data centers in his baseline forecast, with potential reductions reaching 15% to 20%.

He also expects Big Tech capital spending growth to peak in 2027, earlier than previously anticipated.

Still, Ives believes AI infrastructure projects face delays rather than outright cancellations. He now favors software over semiconductor stocks.

Micron Technical Outlook

Despite Friday’s rebound, Micron remains below key moving averages.

Shares trade roughly 21% below the 20-day simple moving average (SMA) and 26% below both the 50-day and 100-day SMAs. The stock also sits 6.3% below its 200-day SMA.

Micron’s next earnings report is expected Dec. 16, 2026. Analysts forecast earnings of $35.07 per share on revenue of $56.55 billion.

The stock holds a consensus Buy rating and an average price forecast of $1,622.38.

Rosenblatt maintains a Buy rating with a $1,900 price forecast, while Needham maintains Buy with a $1,650 forecast.

ETFs With Significant Micron Exposure

Micron has significant exposure through several exchange-traded funds. The Invesco S&P 500 Momentum ETF (NYSE:SPMO) holds an 8.73% weighting, while the State Street SPDR NYSE Technology ETF (NYSE:XNTK) has an 8.25% weighting.

Meanwhile, the Pacer Data and Digital Revolution ETF (NYSE:TRFK) carries an 8.47% weighting.

Micron’s substantial weight in these funds means ETF inflows and outflows could influence trading activity in the stock.

MU Price Action: Micron Technology shares rose 7.95% to $708.57 in Friday’s premarket trading, according to Benzinga Pro data.

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