Watch These Micron Price Levels After Stock Leads AI-Fueled Chip Rally

Industry and Market Trends - Micron Technology (MU) shares led a broad chip rally amid optimism that robust AI demand will continue to drive sector growth this year [2] - Foxconn posted record fourth-quarter revenue driven by booming demand for AI servers, while Microsoft announced plans to invest $80 billion in data centers in fiscal 2025 to power AI technology [2] Company Performance and Positioning - Micron, a memory chip manufacturer, is well positioned to benefit from surging AI infrastructure demand as its silicon is used in the latest AI processors from chipmaking giants like Nvidia and Advanced Micro Devices [3] - Micron shares jumped 10.5$99.26, gaining 18% in just three trading sessions this year, outpacing the iShares Semiconductor ETF's (SOXX) 6% return over the same period [3] Technical Analysis and Price Levels - Micron shares have remained rangebound since bottoming out in early August, establishing identifiable support and resistance levels [5] - The stock gapped lower in mid-December but found buying interest near the August and September swing lows, with Monday's rally occurring on the highest trading volume since mid-December, indicating buying conviction [5] - Key overhead areas to watch include the $110 level, near the 200-day moving average and a trendline linking peaks and troughs from March to December, and the$130 level near the April peak [7] - Important support levels to monitor include the $97 level, just 2$85 level near last month's low, aligning with the August and September troughs [8][9] Market Focus and Investor Sentiment - Micron shares could remain in focus on Tuesday after leading a broad chip rally to start the week, with investors watching key overhead areas around $110 and$130, and support levels near $97 and$85 [10]