MU : A Volatile Market Profit Play ?
On Thu, 13 Mar 2025, for the first time, the S&P 500 finished more than 10% below its most recent record high close, achieved on 19 Feb 2025.
It was still about US tariffs that have caused global unrest.
In the latest long list of tariff threats, Trump vowed he would hit European beverage imports with duties of 200% if the EU does not remove US whiskey surcharges.
This comes after his increased tariffs on all US steel and aluminium imports took effect on Wed, 13 Mar 2025.
Thursday was another blood letting day. (see below)
By the time market called it a day:
-
DJIA: -1.29% (-537.36 to 40,813.57). The Dow is nearing a correction as well, down -9.3% from its all-time high in December 2024.
-
S&P 500: -1.38% (-77.77 to 5,521.52). This puts the S&P benchmark index into correction.
-
Nasdaq: -1.95% (-345.43 to 17,303.02). The tech index is way into correction, its -4.2% below its December 2024 record.
Producer inflation report, the producer price index (PPI) released on Thursday hardly have any effect on the market. (see below)
Producer Price Index (PPI).
The second most anticipated economic report, the producer price index (PPI) report was released on Thursday to no fanfare at all. (see below)
Forecasts vs Actuals.
USPPI for February 2025 (forecasts)
US PPI for February 2025 (actuals)
February 2025’s wholesale prices were flat providing some more welcome news on inflation amid tariff fears. (see above)
Headline inflation
-
Monthly : 0.0% was lower than January’s upwards revised 0.6%.
-
Annual : 3.2% was lower than January’s upwards revised 3.7%.
Core inflation.
-
Monthly : Was a decreased 0.1%. It was the first negative reading since July 2024.
-
Annual : Was up 3.4% in February, down -0.4 percentage point from January.
MU on the rise ?
On Wed, 12 Mar 2025 when US market attempted a recovery, it was “surprising” to find that $Micron Technology(MU)$ ended up as the 2nd top gainers of the day (by percentage), after $Tesla Motors(TSLA)$ and ahead of $Palantir Technologies Inc.(PLTR)$. (see above)
On Wednesday, MU shares shot up +5.5% during mid-day trading.
On Thursday, despite a market sell off (thanks to Trump), MU shares fell marginally by -0.79%.
-
The company traded as high as $98.12 and last traded at $94.88.
-
18,793,178shares traded hands during mid-day trading, a decline of -14.03% from the average session volume of 21,862,434 shares.
-
The stock had previously closed at $95.64.
Catalysts at play.
What are the plus-agents at play, helping to prop the tech stocks up the chart ?
(1) Innovative Product Launches:
-
Micron introduced its groundbreaking 1-gamma DRAM, that offers unparalleled speed and power efficiency.
-
This innovation is expected to drive demand across sectors like AI, cloud computing, and industrial applications.
-
MU also launched the PCIe Gen5 NVMe SSD, that doubles previous performance standards and has been well-received by gamers and professionals.
(2) Integration in High-Profile Devices:
-
Micron's LPDDR5X memory and UFS 4.0 storage solutions were featured in the new Samsung Galaxy S25 series.
-
This reinforced MU’s role in powering next-generation AI-enhanced mobile experiences.
(3) Positive Analyst Sentiment:
-
Analysts issued an "Outperform" rating for Micron with a price target of $120, reflecting optimism about its growth potential and strategic positioning in the semiconductor industry.
A number of research analysts have weighed in on MU shares in December 2024.
-
Cantor Fitzgerald cut MU’s target price from $150.00 to $130.00 and set an "overweight" rating on Thu, 19 Dec 2024.
-
Rosenblatt Securities reiterated a "buy" rating and set a $250.00 price target on Wed, 18 Dec 2024.
-
UBS Group decreased their price objective from $135.00 to $125.00 and set a "buy" rating on Thu, 19 Dec 2024.
-
Bank of America lowered MU from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $125.00 to $110.00 on Thu, 19 Dec 2024.
-
Sanford C. Bernstein decreased their target price on MU from $140.00 to $120.00 and set an "outperform" rating on Wed, 18 Dec 2024.
With the tech stock moving back above its 50-day moving average and the company due to report its quarterly earnings on Thu, 20 Mar 2025 - is it a ripe time to trade options on MU, given its volatility?
Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.
-
Do you think US market will continue to drift lower on mid-month Friday ?
-
Do you think Micron Technology (MU) is a “safer” bet than the other 2 curated ones (TSLA & PLTR)?
If you find this post interesting, give it wings! ️ Repost and share the insights ?
Do consider “Follow me” and get firsthand read of my daily new post. Thank you.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Pls "Re-post" so that more get to know. Tks! Rating is important (to me).
Consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!!
Great article, would you like to share it?