Micron Technology Inc MU heads into its first-quarter earnings announcement with a mix of optimism and caution.

"Choppy Quarters Ahead"?

As Jake Silverman, Bloomberg Intelligence Semiconductor Analyst, puts it, "choppy quarters ahead for NAND" could pose a challenge, with pricing and inventory pressures in the smartphone and PC markets.

However, the analyst also highlights AI-related applications as a potential offset, giving Micron a chance to weather the storm.

Read Also: How To Earn $500 A Month From Micron Stock Ahead Of Q1 Earnings

Bullish Technical Signals Keep Optimists In The Game

Micron's stock, currently trading at $110.93, flashes bullish signs across key technical indicators.

Chart created using Benzinga Pro

It sits well above short- and medium-term moving averages, with the eight-day simple moving average (SMA) at $103.94, the 20-day SMA at $102.07 and the 50-day SMA at $104.07.

The Moving Average Convergence Divergence (MACD) at 1.15 also suggests momentum is on the bulls' side.

However, the 200-day SMA of $110.93 coincides with the price, remaining a hurdle, signaling a potential resistance level.

AI: A Light At The End Of The NAND Tunnel?

The market will be laser-focused on how Micron balances the dynamics of two divergent forces:

1. NAND Weakness: Elevated inventories and pricing pressure.
2. AI Opportunities: As Silverman notes, secular growth in AI applications could provide a much-needed boost, potentially offsetting the broader NAND market challenges.

What's Expected?

Analysts estimate an EPS of $1.76 and revenue of $8.72 billion. But beyond these numbers, investors will be scrutinizing the company's guidance. Can Micron sustain its AI-driven growth momentum, or will "choppy quarters" in NAND drag it down?

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