Key HighlightsMicron shares climbed 1.2% to $1,028.80 in Tuesday’s premarket session, marking an 18% advance over the last monthDRAM pricing increased 6% month-over-month in July; NAND pricing surged 9%Fourth-quarter revenue estimates stand at $50.41 billion, a significant jump from last year’s $11.32 billionAdjusted earnings per share forecasted at $30.89, compared to $2.84 in the prior year periodWall Street’s consensus price target of $1,295 suggests approximately 27% upside potentialMicron stock showed strength in Tuesday’s premarket hours, trading at $1,028.80 with a 1.2% gain, extending an impressive rally that has delivered 18% returns over the past thirty days. Fresh memory chip pricing statistics appear to be fueling additional investor enthusiasm.Micron Technology, Inc., MUData from World Semiconductor Trade Statistics reveals that DRAM average selling prices advanced 6% in July compared to June. NAND pricing experienced a more robust 9% increase during the same timeframe. J.P. Morgan’s Harlan Sur highlighted that June figures were also adjusted upward, with both DRAM and NAND sales revised approximately 6% higher.Given that DRAM represents approximately 75% of Micron’s total revenue mix, these pricing trends carry significant weight as the earnings announcement approaches.The memory chipmaker will unveil its fiscal fourth-quarter results on September 30. Wall Street consensus calls for quarterly revenue of $50.41 billion, a massive increase from $11.32 billion reported in the comparable year-ago quarter. Adjusted earnings per share are anticipated to reach $30.89, dramatically higher than last year’s $2.84.This represents extraordinary growth momentum. The company’s third-quarter revenue reached $41.5 billion, representing a 74% sequential increase from Q2 and a staggering 346% year-over-year jump.Technical Picture Points to Continued StrengthExamining the technical setup, MU has surged from its July trough of $736 to approximately $1,016, delivering close to 40% gains. The shares are maintaining support above the 50-day Exponential Moving Average while trading above both the Ichimoku cloud and Supertrend indicator.The Relative Strength Index has advanced to 60, marking its strongest level since late June and indicating growing upward momentum. Technical traders are targeting $1,253 as the next significant resistance zone, representing roughly 22% potential appreciation from present levels.The stock’s performance has also tracked closely with other memory sector players such as SanDisk, Samsung Electronics, and SK Hynix.Attractive Valuation Compared to Broader MarketEven after the recent rally, Micron’s forward price-to-earnings multiple stands at 13.85. By comparison, the S&P 500 commands approximately 19.9 times forward earnings, while the technology sector trades around 22 times. This valuation discount has attracted analyst attention.Wall Street’s average price target sits at $1,295, implying about 27% upside from current trading levels.It’s worth noting that Micron doesn’t capture every dollar of rising chip prices directly in revenue. The company has established long-term supply contracts with key customers, which set pricing ceilings in return for margin stability. Nevertheless, the broader pricing trend clearly works in the company’s favor.Major clients such as Nvidia, AMD, Google, and Amazon have all delivered robust recent earnings and elevated their forward outlooks, signaling sustained demand for Micron’s memory solutions.Company management has provided guidance for fourth-quarter revenue exceeding $50 billion, while analysts project full-year revenue reaching $242 billion in the upcoming fiscal year.The September 30 earnings announcement represents the next critical catalyst for MU shareholders.The post Micron (MU) Stock Gains Momentum as Memory Chip Prices Surge Before Q4 Earnings appeared first on Blockonomi.