XAutoplay: On | Off Micron Technology (MU) stock broke out on Tuesday amid continued strong demand and pricing for its memory chips. Elsewhere, Analog Devices (ADI) stock surged ahead of its fiscal second-quarter earnings report, while Ambarella (AMBA) tumbled on a stock rating downgrade.
Micron Breaks Out
Boise, Idaho-based Micron is a member of IBD’s Computer-Data Storage industry group. The 13-company group currently ranks No. 19 out of 197 industry groups in terms of stock market performance.
Micron stock was up 36% year-to-date through Friday’s close and up 110% since the start of 2016.
On March 23, Micron posted fiscal second-quarter earnings that beat expectations on in-line sales. It guided to higher sales and earnings for the current quarter.
Silicon Motion Technology (SIMO), a designer of Nand flash-memory controllers, also saw its shares jump on Tuesday.
Silicon Motion rose 1.1% to 52.04, retaking a 51.60 buy point, though in below-average volume. The stock broke out of a cup-with-handle base last Thursday but slipped below the entry on Friday.
Analog Devices Climbing
Analog Devices stock broke out of a cup base with a buy point of 84.34 on Tuesday. ADI rose 2.4% to 84.80 in double average volume.
ADI stock was up 50% from the start of 2016 through Friday’s close. It previously broke out of a flat base with a buy point of 67.01 on Nov. 15 and a flat base with a buy point of 74.97 on Jan. 25.
The Norwood, Mass.-based chipmaker is scheduled to report fiscal second-quarter results before the market open on Wednesday. Analysts expect Analog Devices to earn 84 cents a share, up 31% year over year, on sales of $1.1 billion, up 42%.
For the current quarter, Wall Street is modeling Analog Devices to earn $1.04 a share, up 27%, on sales of $1.35 billion, up 57%.