Micron Technology Inc MU enters its first quarter earnings announcement with a mix of optimism and caution.

As Jake SilvermanAccording to Bloomberg Intelligence Semiconductor Analyst, “troubled quarters for NAND” could be challenging due to pricing and inventory pressures in the smartphone and PC markets.

However, the analyst also highlights AI-related applications as a potential offset that would give Micron a chance to weather the storm.

Also Read: How to Make $500 a Month on Micron Stock Ahead of Q1 Earnings

Micron stock, currently trading at $110.93, is showing bullish signals on key technical indicators.

Chart created with Benzinga Pro

It is well above the short- and intermediate-term moving averages: the eight-day simple moving average (SMA) is at $103.94, the 20-day SMA is at $102.07, and the 50-day SMA is at $102.07 $104.07.

The Moving Average Convergence Divergence (MACD) at 1.15 also suggests that momentum is on the side of the bulls.

However, the 200-day SMA of $110.93 aligns with the price and remains a hurdle, indicating potential resistance.

The market will focus on how Micron balances the dynamics of two diverging forces:

1. NAND weakness: Increased inventories and price pressure.
2. AI possibilities: As Silverman notes, long-term growth in AI applications could provide a much-needed boost and potentially offset the NAND market’s broader challenges.

Analysts estimate earnings per share of $1.76 and revenue of $8.72 billion. But beyond these numbers, investors will be taking a close look at the company’s guidance. Can Micron sustain its AI-driven growth momentum, or will “troubled quarters” in NAND drag the company down?

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