A Rebooted Micron Technology, Inc. (MU) Stock Is Music to Investors’ Ears

After a collapse two years ago, MU stock is looking to make up for lost time

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Of the hot-trending investment sectors, technology was a major concern in the wake of Donald Trump’s election. The markets had a dim view on the President-elect’s hard-line stance towards globalization. Perhaps it also had something to do with the fact that tech tends to be immigrant friendly, and thus, globalist by default. Either way, the benchmark exchange-traded fund Technology SPDR (ETF) (NYSEARCA:XLK) fell apart the day after the election.

Although that didn’t bode well for Micron Technology, Inc. (NASDAQ:MU) at the time, MU stock made a comparatively quick recovery. It actually ended the month of November up 15% — a rarity among its broader peers. For example, Qualcomm, Inc. (NASDAQ:QCOM) effectively went sideways, while Intel Corporation (NASDAQ:INTC) fell a bit short. But with the passage of time — and maybe some grief counseling — the tech sector appears to be off to the races.

Even without the benefit of detailed technical analysis, anyone can see that momentum is on their side. The XLK is steadily building gains, while the previously lauded Financial Select Sector SPDR Fund (NYSEARCA:XLF) has hit a roadblock since early December.

And within tech, I believe MU stock has the best chance of carrying their bullishness well into this new year.

MU Stock Has Been a Contrarian’s Dream

Off the top, I’ll admit that I’m biased. Micron stock has been very good to me from an analytical perspective.

On March 29 of last year, I stated that MU stock had a great opportunity to come back from the dead. Primarily arguing in favor of the joint Micron-Intel memory chip innovation 3D XPoint, MU simply appeared excessively undervalued. This was also evident when examining certain financial strengths. Consequently, MU stock soared 28% three months later.

Fast forward to Dec. 16 — by then, Micron stock was worth a firm “Jackson.” The market value was also nearly twice what it was when I wrote about it that spring.

That put me in an awkward situation. I loved the potential of MU stock, but it was already realized. Do I then insist on my bullishness, or do I call it a day? After all, two-baggers aren’t exactly common, especially in such a short time frame.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/01/micron-technology-inc-mu-stock-music/.

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