Micron Technology Surges 6.34% on Trump Tariff Exemption and AI-Driven Momentum

Summary
• Micron Technology (MU) surges 6.34% to $118.965, hitting an intraday high of $119.3299
• Trump’s 100% semiconductor tariff exemption for U.S. manufacturers sparks sector-wide rally
• Micron unveils new space-grade NAND chip and expands R&D in India to accelerate AI-2™ platform

Micron Technology’s stock is surging amid a confluence of geopolitical tailwinds and product innovation. The stock’s 6.34% intraday gain is driven by President Trump’s announcement exempting U.S. chipmakers from 100% tariffs, coupled with the company’s strategic moves in AI and space applications. With the semiconductor sector rallying on tariff relief and AI demand, investors are recalibrating positions in this pivotal memory player.

Trump's Tariff Exemption and AI-Driven Demand Fuel Micron's Surge
President Trump’s declaration of a 100% semiconductor tariff for non-U.S. manufacturers, with exemptions for companies building in America, directly boosted Micron’s stock. The exemption aligns with Micron’s $200 billion U.S. manufacturing commitment, reducing regulatory risk. Simultaneously, the company’s launch of a 256Gb space-grade NAND chip and its AI-2™ R&D center in India signal long-term positioning in high-margin AI and aerospace markets. Analysts at Citi and UBS have upgraded Micron to 'Buy,' citing its leadership in AI-driven memory demand and tariff-protected growth trajectory.

Semiconductor Sector Rally: Micron Outperforms as AI Demand Surges
The semiconductor sector, led by Intel’s 0.98% intraday gain, is rallying on Trump’s tariff policy and AI infrastructure spending. Micron’s 6.34% surge outpaces peers like AMD (-2.3%) and TSMC (+5%), reflecting its dual exposure to AI memory and U.S. manufacturing incentives. While Samsung’s AI chip lead and SK Hynix’s data center gains highlight sector competition, Micron’s tariff exemption and product innovation position it as a top beneficiary of U.S. policy and AI-driven demand.

Options and ETFs: Capitalizing on Micron's Bullish Momentum
• RSI: 45.66 (oversold)
• MACD: -1.77 (bearish divergence)
• Bollinger Bands: Price at 118.965 (above upper band 121.83)
• 200D MA: 99.06 (far below current price)

Micron’s technicals suggest a short-term overbought condition amid strong momentum. Key support at $111.67 (intraday low) and resistance at $129.85 (52W high) define the near-term range. The Direxion Daily MU Bull 2X Shares (MUU) offers 12.42% leverage, amplifying exposure to a potential breakout. For options, two contracts stand out:

MU20250815C114 (Call, $114 strike, 2025-08-15):
• IV: 44.32% (moderate)
• Leverage Ratio: 19.60%
• Delta: 0.7027 (high sensitivity)
• Theta: -0.5396 (rapid time decay)
• Gamma: 0.0442 (high sensitivity to price swings)
• Turnover: $2.27M
This call option is ideal for aggressive bulls, with a 212.57% price change ratio. A 5% upside to $124.91 would yield a payoff of $10.91 per contract, leveraging Micron’s proximity to its 52W high.

MU20250815C115 (Call, $115 strike, 2025-08-15):
• IV: 44.53% (moderate)
• Leverage Ratio: 22.11%
• Delta: 0.7027 (high sensitivity)
• Theta: -0.5396 (rapid time decay)
• Gamma: 0.0442 (high sensitivity to price swings)
• Turnover: $2.27M
This contract offers a 212.57% price change ratio and a 5% upside payoff of $9.91. Its high gamma and moderate IV make it a top pick for capitalizing on Micron’s volatility.

Action: Aggressive bulls may consider MU20250815C114 into a breakout above $120, while hedging with a stop-loss at $115.

Backtest Micron Technology Stock Performance
The backtest of MU's performance after a 6% intraday surge shows favorable short-to-medium-term gains, with win rates and returns increasing across 3, 10, and 30 days. This indicates the strategy's effectiveness in capturing positive momentum, making it a potentially profitable approach for traders looking to capitalize on intraday volatility.

Micron’s AI and Tariff Tailwinds: A High-Velocity Trade Setup
Micron’s surge is underpinned by Trump’s tariff exemption and AI-driven demand, but sustainability hinges on maintaining its 52W high of $129.85. The sector’s rally, led by Intel’s 0.98% gain, reinforces the bullish case. Investors should monitor the 200D MA at $99.06 as a critical support level and watch for a breakout above $120 to confirm a long-term uptrend. For immediate action, the MU20250815C114 call offers a high-leverage play on a potential $124.91 target. As the AI memory market expands, Micron’s strategic positioning and U.S. policy tailwinds make it a compelling high-velocity trade.