Chipmaker Micron Technology (NASDAQ:MU) announced stronger-than-expected guidance on Tuesday morning, with gains of up to 7% defying the general market volatility.
For Q2 of this year, the semiconductor maker increased its estimate for total revenue to the $7.2 to $7.35 billion range, up from its previous estimate of $6.8 to $7.2 billions. It also increased earnings per share to a range of $2.70 to $2.75 from $2.51 to $2.65.
In response, KeyBanc upgraded MU to overweight, noting that “valuation and long-term trends are too compelling to ignore.”
Our analysis is for the stock to move higher later in 2018. Given its market cycles, we expect the MU to correct into April.
The market cycles on the charts below are designated by the semicircles at the bottom of the chart.
MU Stock Chart (Weekly Bars)
