MU

That's on the back of MU earnings not collapsing in the market. It pushed up. They did so slightly which allowed the rest of the other SIM and AI tech plays to just push up higher on the charts. breathe a sigh of relief that MU didn't get knocked on its earnings report.

All right, MU. This is a big company. It it's really had a whole bunch of excitement this year rallying up the way it has with the AI data center buildout. And guys, if you haven't recognized, man, this has been a key driver in the increase of cost for all the computers.

Beware if you're going to be shopping for a new computer over the holiday season. Memory prices have literally gone out of control. But anyway, back into MU. The key thing for MU and a lot of investors including myself were watching was this horizontal trend line separating price from the peak highs that we had back in June.

And you can see price was capped for several attempts to go higher right here at this level at $1,35.50. Well, today we did trade underneath that. And where did we finish? Up near the top range of this consolidation.

So that leaves it at least near-term positive, which is also why the semis pushed up higher, which is why a lot of other uh um AI and tech plays continued to push up because MU did not break down.

Now, where can it go next? We've clearly got a gap fill right here. But guys, if I take away this inclining trend line, let me draw a parallel channel. I think this illustrates where we could go, especially when charts are making new highs on on their uh on the year or just on any near-term making new highs. where can we go?

Because we're not just going to stop at all-time highs on every single chart, but we cleanly see here if we were to continue to march up, that 50% area, the parallel will likely be the next key resistance beyond what I already identified, the gap fill and the all-time high.

Now, when it gets there is another question, but as you can see here, that line extends and gets higher and higher and higher for MU. So, positive news though, takeaway today. We are in the green still in this consolidation eyeing the next potential gap fill with a lot of overhead room to run if this MU play catches fire again.

Micron, did you guys trade Micron yesterday? because that was that was an epic ride. We watched it from the opening bell. Who was here for it yesterday? Say me if you were here for it yesterday.

We watched Micron open uh what was it around 1050. It climbed all the way up to 10 1070. Then it dropped down to 1022. and then it pushed all the way to 1095 uh where it closed.

This is a chart updated right after Micron's Q4 fiscal 2026 report just a little while ago, and look at that huge jump in interest and investment income and its effect on earnings per share.

We don't have free cash flow per share yet. The 2026 annual report hasn't been filed yet by Micron, but we're gonna be talking about this. Let's talk about Micron. It was, again, obviously, and as expected, a very good report.

Micron's quarterly financial results compared to the stock price reaction are a prime example of why ordinary people are confused about the stock market, wondering in amazement, "What's going on in the world here?"

The reason I say this is that Micron reported revenues of $54.2 billion in its recently ended quarter, which is almost five times the revenue in the same quarter last year when it reported $11 billion.

So, revenues and sales have increased almost fivefold compared to the same period last year.

This is Micron, a $1.2 trillion semiconductor company that's benefiting from the current AI data center buildout. And it's only trading at 6 times 2027 earnings.

So today I'm going to dive in why Micron is trading at 6.7 times next year's earnings and why despite going up 1,400% over the past 5 years and nearly 500% over the past year, the stock is actually cheaper today based on its earnings.

I am interested in knowing your general impressions of Micron's latest earnings results. They continue to grow; their performance this quarter has been incredible. Revenues increased by more than 250%, and profits grew by more than 800%.

They continue to grow at an astonishing rate to meet the demand for their innovative memory, especially high-bandwidth and compression memory. Thus, to meet the requirements of larger models and more detailed inference processes.

They delivered numbers that uh are just gonna they're just they scorch the the eyebrows off my face. We're talking about 87% gross margin. Uh you know, how do you pull off margins like this making micro chips in was it Idaho and some in Korea? It's absolutely insane.

Uh Micro has uh now 26 strategic customer agreements and that's 35% of their estimated revenue through 2030. Um 32 billion uh dollars of customer financial commitments. The HBM demand remains through the roof.

I mean, these people are in like heart attack mode, just trying to keep up um uh with the HPM memory.

Revenues were four times higher than last year. So, Micron has once again exceeded expectations spectacularly. Revenues reached $54.2 billion. They outperformed in profits.

Overall, this report was very strong. We must also remember, as I mentioned, that this is the memory sector. So, people put Micron and Nvidia in the same conversation. Nvidia is making more chips.

Micron makes chips, but it is more dedicated to the memory side of artificial intelligence, which is still very healthy and very strong, and as I mentioned, they have problems with demand.

Well, demand is very strong, but supply is very constrained. Therefore, they have pricing power, and they have been able to take full advantage of that and use it to their advantage, and the company is achieving overwhelming success.