Micron Technology ((MU Quick QuoteMU - Free Report) ) shares surged more than 11% after the company reported blowout earnings yesterday evening, easily beating analyst estimates on both the top and bottom lines. The most notable takeaway was Micron’s guidance for next quarter, with revenue expectations raised to $18.7 billion from roughly $14.2 billion and earnings guidance nearly doubling from $4.78 per share to $8.42.

Management struck a confident tone, noting that it is “more than sold out,” and reiterated expectations for the total addressable market for high-bandwidth memory to reach $100 billion by 2028, implying a compound annual growth rate of roughly 40%.

There’s no question this was a stellar report, capping off a banner year for the memory giant. Still, it’s hard to ignore the industry’s cyclical nature. Historically, peak earnings often coincide with peak pricing, and memory stocks have a habit of looking cheapest just before margins begin to roll over.

That said, the AI-driven demand backdrop makes this cycle anything but typical. With powerful secular tailwinds, a Zacks Rank #1 (Strong Buy), and strong technical momentum reinforcing the bullish fundamentals, excessive caution here could quickly prove misplaced.

While AI leaders like Nvidia ((NVDA Quick QuoteNVDA - Free Report) ) and Broadcom ((AVGO Quick QuoteAVGO - Free Report) ) have traded sideways to lower over the past several months, Micron has continued to push higher. The key question is whether tight high-bandwidth memory supply will persist and drive the stock even higher, or if investors begin rotating back into established leaders like Nvidia and Broadcom.

For investors considering MU stock, the most practical approach is to let the price action be the guide. Below, I’ll break down Micron’s technical setup and outline a tactical plan.

Micron Technology Shares Rally on Earnings Upgrades

As shown in the chart below, Micron shares largely stagnated between 2022 and mid-2025, reflecting a choppy earnings revision trend and lingering skepticism around the durability of the memory recovery. While AI-driven demand for high-bandwidth memory was already emerging, investors lacked confidence that Micron could fully monetize that opportunity.

That changed in the summer of 2025, when earnings revisions turned decisively higher as visibility into HBM production, pricing, and capacity allocation improved. Management’s increasingly confident guidance signaled that demand was not only strong but constrained by supply, forcing analysts to raise forecasts. As earnings expectations reset higher, the stock followed.

The wave of earnings upgrades has continued, earning Micron a Zacks Rank #1 (Strong Buy). Estimates were raised again today, and over the past 60 days, current year earnings expectations have climbed 22.38%, while next year’s estimates are up 32.42%.

Image Source: Zacks Investment Research

Can MU Stock Breakout Again?

Micron’s technical chart is sending several important signals. The stock has delivered an impressive run, forming a series of consolidations and subsequent breakouts over the past several months. While shares are trading sharply higher today, MU has not yet cleared prior highs and remains within a broad trading range.

Key support and resistance levels are critical to watch here. This news should be decisively bullish, but if the stock fails to break out and close above the $262 level in the near-term, it raises some caution flags. A clean breakout above that level, however, would likely signal another leg higher.

If MU does not break out, investors should closely monitor the rising support below. A decisive move beneath that level would materially increase downside risk. One additional cautionary signal is the expansion in the stock’s daily trading range. Stocks that grind higher on low volatility often sustain trends, but rising volatility (ranges) during an advance, as seen in MU, can sometimes precede a corrective phase.

Image Source: TradingView

What’s Next for Shares of Micron Technology?

Micron’s earnings reset has clearly established the stock as a leader in the AI infrastructure trade, but the next phase will likely be driven by price action rather than headlines. As long as high-bandwidth memory supply remains tight and earnings revisions continue to trend higher, MU has room to extend its outperformance, even as larger AI names like Nvidia work through their own consolidation phases.

That said, leadership rotations are a constant in this market. If investor risk appetite shifts back toward platform and networking exposure, or some other vertical, you could see leadership emerge elsewhere in the AI industry. For now, however, MU’s combination of accelerating earnings momentum and constructive technicals keeps the stock firmly in focus.

Ultimately, investors should remain disciplined and let the chart confirm the next move. A sustained breakout would argue for another leg higher, while a failure to hold key support would signal that expectations may be getting ahead of fundamentals.