MU Stock Surges 19% With A 5-day Winning Spree On HSBC $500 Price Target
Micron Technology (MU) – a designer and manufacturer of memory and storage products – hit 5-day winning streak, with cumulative gains over this period amounting to a 19%. The company market cap has surged by about $72 Bil over the last 5 days, and currently stands at $447 Bil.
The stock has YTD (year-to-date) return of 39.3% compared to 1% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Aggressive Analyst Price Target Hikes
- NVDA, MU Look Smarter Buy Than Monolithic Power Systems Stock
- How Micron Technology Stock Gained 270%
- Micron Technology Stock Surged 260%, Here’s Why
- Pay Less, Gain More: MU Tops Broadcom Stock
- What Can Trigger Micron Technology Stock’s Slide?
- Is Micron Technology Stock Built to Withstand a Pullback?
- HSBC Target Raised To $500
- William Blair Initiated ‘Outperform’
- Impact: Sustained Buying Pressure, Breakout To 52-week High
[2] Record Financial Performance & AI Tailwinds
- Record Q1 Revenue of $13.64 Billion
- Surging AI-Driven DRAM Demand
- Impact: Strong Institutional Accumulation, Validating Sector-Wide Momentum
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in MU stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive (For details, see Buy or Sell MU).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for MU stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | MU | S&P 500 |
|---|---|---|
| 1D | 2.2% | 0.5% |
| 5D (Current Streak) | 19.3% | -0.2% |
| 1M (21D) | 49.6% | 1.2% |
| 3M (63D) | 96.6% | 2.6% |
| YTD 2026 | 39.3% | 1.0% |
| 2025 | 240.2% | 16.4% |
| 2024 | -1.0% | 23.3% |
| 2023 | 71.9% | 24.2% |
However, big gains can follow sharp reversals – but how has MU behaved after prior drops? See MU Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 43 S&P constituents with 3 days or more of consecutive gains and 29 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 29 | 16 |
| 4D | 7 | 5 |
| 5D | 2 | 6 |
| 6D | 2 | 2 |
| 7D or more | 3 | 0 |
| Total >=3 D | 43 | 29 |
Key Financials for Micron Technology (MU)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $25.1 Bil | $37.4 Bil |
| Operating Income | $1.3 Bil | $9.8 Bil |
| Net Income | $778.0 Mil | $8.5 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ4 | 2026 FQ1 |
|---|---|---|
| Revenues | $11.3 Bil | $13.6 Bil |
| Operating Income | $3.7 Bil | $6.1 Bil |
| Net Income | $3.2 Bil | $5.2 Bil |
While MU stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.