Micron Technology (MU) Surges 2.23% to 52-Week High Amid Earnings Optimism and Sector Rally – What’s Fueling This Momentum?

Summary
• Micron Technology (MU) trades at $291.03, up 2.23% intraday, hitting a 52-week high of $291.85
• Earnings report reveals $5.24B net income, doubling YoY, with $18.7B Q2 revenue guidance
• Sector peers like Intel (INTC) rise 0.317%, while leveraged ETF Direxion Daily MU Bull 2X Shares (MUU) jumps 4.51%

Micron Technology’s stock surged to a 52-week high on December 29, 2025, driven by a blockbuster earnings report and bullish forward guidance. The semiconductor giant’s shares traded within a $278.52–$291.85 range, reflecting strong investor confidence in its AI-driven growth trajectory. With the sector rallying on AI demand and supply constraints, MU’s performance underscores its pivotal role in the memory and storage market.

Earnings Surge and AI-Driven Guidance Ignite Investor Optimism
Micron’s 2.23% intraday gain stems from a landmark Q4 2025 earnings report, where net income doubled to $5.24 billion year-on-year, and revenue surged 56% to $13.6 billion. CEO Sanjay Mehrotra highlighted the company’s role as an 'essential AI enabler,' with Q2 2026 guidance projecting $18.7 billion in revenue and $8.19 diluted EPS. The stock’s rally aligns with its strategic focus on AI infrastructure, including High Bandwidth Memory (HBM) and NAND flash, which are critical for data centers and AI workloads. Analysts at Itau BBA and Cantor Fitzgerald raised price targets to $300–$350, citing robust demand and margin expansion.

Semiconductor Sector Rally Amplifies Micron’s Gains as Intel Trails
The broader semiconductor sector gained momentum, with TSMC’s 2nm process entering volume production and NVIDIA’s AI chip demand surging. However, Micron outperformed peers like Intel (INTC), which rose 0.317% on the day. While Intel’s growth remains tied to PC and data center cycles, Micron’s AI-focused product mix and supply constraints in DRAM/NAND memory position it as a key beneficiary of the AI boom. Analysts at Bernstein and Piper Sandler highlighted Micron’s ability to capture pricing power amid tight supply, contrasting with Intel’s reliance on capex-driven demand.

Bullish Options and ETFs Align with Micron’s AI-Driven Trajectory
• MACD: 13.298 (above signal line 9.371), RSI: 68.53 (neutral), Bollinger Bands: Price at $291.03 (above upper band $288.85)
• 200-day MA: $145.21 (far below), 30-day MA: $242.63 (below current price)
• Support/Resistance: 30-day support $225.26, 200-day support $117.99

Micron’s technicals suggest continued bullish momentum, with RSI in neutral territory and MACD above its signal line. The Direxion Daily MU Bull 2X Shares (MUU) offers 2x leverage, amplifying exposure to the stock’s AI-driven rally. For options, two contracts stand out:

• MU20260102C290 (Call): Strike $290, Expiry 2026-01-02, IV 44.85%, Leverage 44.72%, Delta 0.532, Theta -1.78, Gamma 0.026
- IV (44.85%): Reflects moderate volatility expectations
- Leverage (44.72%): Amplifies gains if MU breaks above $290
- Delta (0.532): Sensitive to price moves, ideal for short-term bullish bets
- Theta (-1.78): Time decay manageable for January expiration
- Gamma (0.026): High sensitivity to price swings, beneficial in volatile AI-driven markets
- Turnover: $6.08M, ensuring liquidity for entry/exit
- Payoff at 5% upside (ST = $305.58): $15.58 per contract, 55% return on $28.00 premium

• MU20260102C300 (Call): Strike $300, Expiry 2026-01-02, IV 44.94%, Leverage 109.27%, Delta 0.286, Theta -1.16, Gamma 0.022
- IV (44.94%): Slightly higher than 290-strike, reflecting demand for higher strikes
- Leverage (109.27%): Aggressive payoff if MU surges past $300
- Delta (0.286): Lower sensitivity, suitable for longer-term bullish bets
- Theta (-1.16): Slower time decay, advantageous for January expiration
- Gamma (0.022): Moderate sensitivity, balancing risk/reward
- Turnover: $1.93M, sufficient for trade execution
- Payoff at 5% upside (ST = $305.58): $5.58 per contract, 193% return on $2.88 premium

Trading Setup: Aggressive bulls should target the MU20260102C300 call for high leverage if MU breaks above $300. Conservative traders may use the MU20260102C290 call as a core position, with a stop-loss below $278.52 (intraday low). The Direxion Daily MU Bull 2X Shares (MUU) offers amplified exposure for those avoiding options complexity.

Backtest Micron Technology Stock Performance
The backtest of MU's performance after a 2% intraday surge from 2022 to the present indicates positive short-to-medium-term gains. The 3-Day win rate is 51.37%, the 10-Day win rate is 57.25%, and the 30-Day win rate is 61.18%, suggesting that MU tends to experience gains within these time frames. The maximum return during the backtest was 10.01% over 30 days, indicating potential for substantial gains if the 2% surge triggers further bullish momentum.

Position for 2026 AI-Driven Growth – Micron’s Bull Run Shows No Signs of Slowing
Micron’s earnings surge and AI-focused guidance confirm its leadership in the memory and storage market. With supply constraints and AI demand driving pricing power, the stock’s rally is likely to continue into 2026. Investors should monitor the $290–$300 range for key support/resistance, while options like MU20260102C300 offer high-reward potential. Sector leader Intel (INTC) rose 0.317%, but Micron’s AI-driven momentum makes it a standout play. Act now: Buy MU20260102C300 calls or allocate to MUU for leveraged exposure as the AI cycle accelerates.