Watch These Micron Price Levels After Stock Leads AI-Fueled Chip Rally

Source: TradingView.com

Micron shares could remain in focus on Tuesday after leading a broad chip rally to start the week amid optimism that robust AI demand will continue to drive sector growth this year.

The stock rallied from a key support area on the highest trading volume since mid-December, indicating buying conviction behind the move.

Investors should watch key overhead areas on Micron’s chart around $110 and $130, while also monitoring important support levels near $97 and $85.

Micron Technology (MU) shares could remain in focus on Tuesday after leading a broad chip rally to start the week amid optimism that robust artificial intelligence (AI) demand will continue to drive sector growth this year.

The move Monday came after contract electronics manufacturer Foxconn posted record fourth-quarter revenue driven by booming demand for AI servers, while Microsoft (MSFT) recently announced plans to invest $80 billion in data centers in fiscal 2025 to power AI technology.

Micron, a manufacturer of memory chips, stands well positioned to benefit from surging AI infrastructure demand as its silicon is used in the latest AI processors from chipmaking giants such as Nvidia (NVDA) and Advanced Micro Devices (AMD).

Micron shares jumped 10.5% on Monday to close at $99.26. In just three trading sessions this year, the stock has gained 18%, handily outpacing the iShares Semiconductor ETF’s (SOXX) 6% return over the same period.

Below, we take a closer look at Micron’s chart and use technical analysis to identify price levels worth watching.

Since bottoming out in early August, Micron shares have remained rangebound, helping to establish easily identifiable support and resistance levels on the chart.

More recently, the stock gapped lower in mid-December, but immediately found buying interest near the August and September swing lows. Importantly, Monday’s rally from this key support area occurred on the highest trading volume since mid-December, indicating buying conviction behind the move.

Let’s identify several key overhead areas that could…

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