Why Is Micron Stock Surging On Wednesday?

Micron Technology Inc (NASDAQ:MU) shares surged during Wednesday's premarket session. This follows a 4.5% gain on Tuesday. Investors are positioning themselves before the company's fiscal second-quarter results. The report drops after the closing bell on Wednesday. Analysts Expect Massive Year-Over-Year Growth Wall Street expects a significant jump in financial performance. According to Benzinga Pro data, the consensus revenue estimate is $19.26 billion. This compares to $8.05 billion in the year-ago period. Analysts project quarterly earnings of $8.77 per share. Last year, the company reported just $1.56 per share. TD Cowen analyst Krish Sankar is even more optimistic. He expects earnings of $10.40 per share for the February quarter. Sankar maintained a Buy rating and raised his price target to $500. AI Hardware Demand Fuels Bullish Sentiment Surging AI demand continues to drive expectations. Micron on Monday began high-volume production of HBM4 memory. This hardware supports Nvidia Corp.'s (NASDAQ:NVDA) Vera Rubin platform. RBC Capital analyst Srini Pajjuri raised his price forecast to $525. He noted that rising pricing trends are likely to drive another earnings beat. Pajjuri believes the AI-driven memory upcycle could extend into 2027. Micron is also expanding its manufacturing footprint. The company recently closed its purchase of a manufacturing location in Tongluo, Taiwan. This site adds 300,000 square feet of cleanroom space. Technical Analysis MU is trading 13.3% above its 20-day simple moving average (SMA) and 47.3% above its 100-day SMA, a setup that signals strong trend control by buyers across both short- and intermediate-term timeframes. Shares are up 353.88% over the past 12 months and are positioned closer to their 52-week highs than lows after setting a new 52-week high on March 17. The RSI is at 64.21, which sits in neutral territory. Meanwhile, MACD is bullish with the MACD line at 11.4630 above the signal line at 7.7492. Key Resistance: $469.50 Key Support: $413.50 MU Stock Price Activity: Micron Technology shares were up 2.6% at $473 during premarket trading on Wednesday, according to Benzinga Pro data. Photo: Below the Sky / Shutterstock