Micron (MU) Stock Rises as SK Hynix Approves $38 Billion Chip Investment

TLDR

• Micron (MU) stock rose ~1.6% in Friday premarket to $895.50, recovering from Thursday weakness
• SK Hynix approved $38.15 billion in new chip fabrication facilities in South Korea
• No major new memory chip capacity expected online for at least another year
• Wall Street expects Micron EPS of $31.24 on $50.72B revenue when it reports around Sept. 22
• MU is up more than 600% over the past 12 months; analyst consensus price target sits at $1,548.86

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Micron Technology stock climbed in Friday premarket trading after rival SK Hynix announced a massive investment in new chip manufacturing facilities. MU was up 1.6% at $895.50 before the opening bell.

Micron Technology, Inc., MU

The move came after a rough Thursday, when memory stocks sold off following quarterly updates from SanDisk and Western Digital. Friday’s bounce appeared driven more by broader tech sentiment than any Micron-specific catalyst.

Nasdaq futures were up 0.43% and S&P 500 futures gained 0.18%, helping lift large-cap tech names across the board.

SK Hynix’s board approved 54.3 trillion won, roughly $38.15 billion, for new fabrication facilities in South Korea. That is a big number, but investors have already heard bigger. In June, SK Hynix and Samsung said they would jointly spend 800 trillion won, or around $518.58 billion, to build new chip hubs in southwestern Korea.

SK Hynix’s American depositary receipts were down 0.8% in U.S. premarket trading. The company’s stock fell 4.9% in South Korea on Friday.

The key issue for memory chip investors is supply timing. Big chip plants take years to build. Micron’s own $100 billion New York facility was announced in 2022 and is not expected to start production until 2030. No major new memory capacity is expected to come online for at least another year, with more slated for 2028.

That supply lag continues to underpin the bull case for Micron, as AI hardware demand keeps growing.

Technical Levels to Watch

Micron is sitting just below its 20-day moving average of $893.35, and roughly 8.2% below its 50-day moving average of $971.96. The relative strength index stands at 47.66, pointing to neutral momentum.

On the upside, resistance sits near $1,012. Support is around $891.50. Despite the recent pullback from June highs, MU remains up about 688% over the past 12 months.

The broader trend still leans bullish. The 50-day average remains above the 200-day average, and MU trades 67.8% above its 200-day moving average of $531.67.

What Analysts Expect

Micron is due to report quarterly earnings around September 22. Wall Street is looking for EPS of $31.24, up from $3.03 a year ago, on revenue of $50.72 billion, compared to $11.31 billion in the prior-year period.

The stock holds a consensus Buy rating with an average price target of $1,548.86.

Recent analyst moves include Cantor Fitzgerald raising its target to $2,000 on June 29, and Keybanc lifting its forecast to $1,750 on July 14. Both carry Overweight ratings.

Micron scores 99.62 on Benzinga’s momentum ranking and 97.65 on quality. Its value score of 36.97 trails its other metrics, suggesting the stock is not cheap relative to peers.

MU is also a top holding in several semiconductor ETFs, including the Fidelity Disruptive Technology ETF at 9.33% and the Invesco PHLX Semiconductor ETF at 8.91%.