Why Micron Stock Jumped Today

Micron (NASDAQ: MU) stock rose in Tuesday's trading. The memory technologies company's share price climbed 4.7% in the daily session. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) gained 1.1%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) climbed 1.4%.

Micron's valuation got a boost today as macroeconomic and geopolitical developments pointed to a more favorable backdrop for investors. Excitement surrounding the company's quarterly report tomorrow may have also factored into the valuation move.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Micron stock rises on more favorable macroeconomic and geopolitical outlook

Federal Reserve Chair Jerome Powell said today that the central bank would continue to monitor tariff and inflation dynamics before committing to cutting interest rates, but he also left the door open for a rate reduction next month. Along with other recent comment from Fed officials, Powell's statements today bolstered investor hopes for a rate cut next month and helped send the broader market higher.

Investors were also relieved to see the announcement of a ceasefire in the war between Israel and Iran. In addition to being a potential source of outcomes that could drive inflation higher, investors have shown signs of concern that military actions between the two countries could spiral into a much wider conflict that would destabilize markets. With a ceasefire now in place, Micron and other stock stocks received valuation boosts as buyers became less risk-averse.

What's next for Micron?

After market close tomorrow, Micron will publish results for the third quarter of its current fiscal year, which concluded May 30. The average Wall Street analyst estimate calls for the business to report non-GAAP (generally accepted accounting principles) adjusted earnings per share of $1.61 on sales of $8.85 billion. With the last update from Micron, the company guided for adjusted earnings per share to be between $1.47 and $1.67, and for sales to be between $8.6 billion and $9 billion.

While the company is expected to see relatively soft sales for its NAND memory chips, analysts are expecting strong performance for high-bandwidth-memory (HBM) and other DRAM solutions. With AI-focused HBM products potentially making up a bigger portion of Micron's sales mix, sales for these higher-margin products could push Micron to a stronger-than-expected earnings performance in the period.

Should you invest $1,000 in Micron Technology right now?

Before you buy stock in Micron Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,692!*

Now, it’s worth noting Stock Advisor’s total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Keith Noonan has positions in Micron Technology. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.