Micron stock hasn't been this overbought in nearly 30 years

Bill Clinton was president the past clip Micron (MU) sported this benignant of comparative spot scale (RSI) connected the charts.

AlphaSpace intel: According to Yahoo Finance AlphaSpace, the RSI connected representation spot play Micron presently stands astatine 90. It hasn’t been this precocious since hitting 96 connected Sept. 1, 1995.

The RSI is simply a fashionable momentum indicator utilized successful method investigation to measurement the velocity and alteration of a stock’s terms movements. When the RSI rises supra 70, it typically indicates that the plus has experienced a accelerated upward terms question and whitethorn beryllium overvalued oregon owed for a inclination reversal oregon corrective pullback.

After hitting 96 successful 1995, Micron’s banal tanked importantly successful the pursuing months. The sell-off successful the banal persisted until July 1996 oregon so, according to AlphaSpace data.

Memory banal vibe check: The AI superior expenditures roar sweeping the US has funneled down to Sandisk (SNDK), Micron, and galore others successful the representation spot space. As hyperscalers specified arsenic Amazon (AMZN) physique AI information centers, request for representation chips has surged. These chips store and determination information for AI models, which necessitate ample volumes of accusation to execute astatine precocious levels.

Memory has go 1 of the tightest parts of the AI proviso chain, allowing the companies to hike prices to boost their profits.

“Booming wide server request starring stronger and longer representation cycle,” said HSBC expert Ricky Seo successful a caller note.

The marketplace utilized this backdrop to nonstop the institution beyond the $1 trillion marketplace headdress milestone for the archetypal clip connected May 26.

Micron is present sitting connected a jaw-dropping 240% year-to-date summation for 2026. Its marketplace headdress is presently $1.1 trillion.

Bottom line: If Micron’s banal is going to beryllium deed with a well-deserved correction, it’s going to beryllium soon. Nothing goes up successful a consecutive line, and that includes 1 of the hottest stocks successful caller memory.