Coach Mark here

Micron had earnings after the bell last night and if you read the financial headlines then “disappointment on revenue guidance” was all the rage. If price is down after earnings that financial media must find a “reason” for it. We see this all the time as they need to create clicks and guess why price is doing what it is doing. You will never see, “Micro selloffs off after a big run as traders take a little profit after an overextended move to the upside.” They will always attempt to attach a fundamental cause to price action even if the REAL reason is technical or sentiment driven in nature.

A little tidbit about Micron’s earnings call. Here is a direct quote:

• “Continued growth of AI in the data center create a favorable setup that gives us confidence that we can deliver a substantial revenue record in fiscal 2025.”

Micron’s HBM chip used in data centers is sold out for the rest of 2024. Oh, and by the way it is sold out for 2025 as well. That is how high the demand is. They expect to generate several hundred million dollars of revenue from HBM in fiscal 2024 and multiple billions of dollars in revenue from HBM in fiscal 2025. I laughed out loud when they used the word “multiple” as you do not hear an upside projection phrased that way very often.  

Micron should be on a watchlist for pattern development in the coming weeks. When a stock moves up that quickly it can take a minute to reset the patterns but I have not been this impressed with a conference call on Micro ever. There is a reason it is on my brother’s AI watchlist.

Speaking of my brother, he had a fantastic AI Gold Rush show last night! Be sure to check it out if you could not attend live. You can watch the recording here.

Have a fantastic Thursday!

Chart of the Day: Micron Weekly Chart (MU)

The last time we came down to the rising 9 weekly we found support and it created quite the bounce. Paying attention to the daily chart for pattern formation at this level is something that many a trader will do in the coming days.

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