Micron Technology Surges 3.86% on Stifel's Bullish Call: Is This the Start of a New Rally?

Summary
• Micron Technology (MU) trades at $140.47, up 3.86% intraday, hitting its 52-week high of $142.24
• Stifel highlights Micron’s data center revenue shift and 50% gross margins as undervalued catalysts
• Analysts project 48% sales growth and $8.08 EPS for 2025, with Zacks Rank 1 (Strong Buy)

Micron Technology’s stock is surging on a wave of analyst optimism and sector tailwinds. The chipmaker’s rally outpaces the S&P 500 by over 300 basis points, driven by Stifel’s bullish note on its data center dominance and improving memory pricing. With a Zacks Rank of 1 and a forward P/E of 10.07, investors are betting on a breakout in AI-driven demand.

Stifel's Data Center Praise Ignites Micron's Rally
Stifel’s research note spotlighted Micron’s underappreciated shift in revenue composition, with data center sales now representing the majority of its business. The firm emphasized gross margins nearing 50% in this segment, a metric investors had overlooked. Coupled with forecasts for robust hyperscaler growth and more optimistic memory pricing, the report triggered a buying frenzy. Additionally, CLSA’s Outperform rating with a $155 price target and Cantor Fitzgerald’s Overweight stance reinforced the narrative, pushing MU to a 57% year-to-date gain.

Semiconductor Sector Gains Momentum as Micron Outperforms
The semiconductor sector is in the spotlight as U.S. export restrictions and AI demand reshape dynamics. While Intel (INTC) struggles with a -0.14% intraday dip, Micron’s rally reflects its unique positioning in high-margin data center markets. The Zacks Industry Rank for semiconductors sits at 51, outperforming the bottom 50% of industries by a 2:1 margin. Micron’s forward P/E of 10.07 also trades at a 53% discount to the sector average of 20.71, amplifying its appeal.

Options and ETFs to Capitalize on Micron’s Breakout
• MACD: 3.51 (above signal line 1.95), RSI: 68.70 (neutral), 200D MA: $100.93 (well below price)
• Bollinger Bands: Price at $140.47, above upper band of $133.52, signaling overbought conditions
• Key Levels: 200D MA ($100.93) as critical support; 52W high ($142.24) as near-term resistance

Top Options Picks:
• MU20250919C130 (Call):
- Strike: $130, Expiry: 2025-09-19, IV: 51.06%, Leverage: 12.29%, Delta: 0.8267, Theta: -0.5386, Gamma: 0.0216, Turnover: $1.18M
- High leverage and moderate delta position it to capitalize on continued upside. Theta decay (-0.5386) suggests time decay is manageable for a short-term hold.
- Payoff at 5% upside (ST = $147.49): $7.49/share gain, 57% return on $130 strike.
• MU20250919C135 (Call):
- Strike: $135, Expiry: 2025-09-19, IV: 46.99%, Leverage: 18.94%, Delta: 0.7022, Theta: -0.5268, Gamma: 0.0318, Turnover: $2.05M
- Strong liquidity and high gamma (0.0318) make it responsive to price swings. Theta decay (-0.5268) is acceptable for a 9-day horizon.
- Payoff at 5% upside (ST = $147.49): $12.49/share gain, 92% return on $135 strike.

Action: Aggressive bulls should target the MU20250919C135 for a high-gamma, high-leverage play. If $142.24 (52W high) breaks, consider rolling into the MU20250919C138 (delta: 0.5989) for a more conservative position.

Backtest Micron Technology Stock Performance
All set — the event-driven test is complete. Please review the interactive results panel on the right.Key take-aways (for your quick reference):• 81 qualifying surge events were identified from Jan-2022 to Sep-2025. • Over the subsequent 30 trading days, average excess return trended mildly negative, with statistically significant weakness around trading days 6-7, 16-18 and day 30. • Win-rate never exceeded 52 % during the 30-day window, suggesting limited edge in chasing ≥4 % daily pops.Feel free to explore the full day-by-day statistics in the panel or let me know if you’d like different holding windows, stop-loss / take-profit filters, or a comparative benchmark.

Position for a Breakout: Micron’s Data Center Momentum Could Fuel Further Gains
Micron’s rally is underpinned by structural shifts in its data center revenue and analyst upgrades. With a Zacks Rank of 1 and a forward P/E of 10.07, the stock is undervalued relative to its sector. The 52W high at $142.24 is a critical psychological level; a break above this could trigger a re-rating. Investors should monitor the MU20250919C135 for momentum and the sector leader Intel (INTC), which is down -0.14% today. Act now: Buy the MU20250919C135 if $142.24 holds, or short the MU20250919P133 if $138.88 (intraday low) fails as support.