Why Micron Stock Hit New All-Time High Today

Micron Technology Inc (NASDAQ:MU) shares traded higher on Wednesday afternoon, hitting a new all-time high, following the Federal Reserve's decision to cut interest rates by 25 basis points to a target range of 3.5%-3.75%.

Here’s what investors need to know.

• Micron Technology shares are testing new highs. What’s behind MU new highs?

What To Know: While the move met broader market expectations, it exposed a widening divide within the central bank: Gov. Stephen Miran dissented in favor of a larger 50-basis-point cut, while two regional presidents voted to hold rates steady.

For a capital-intensive semiconductor manufacturer such as Micron, this third consecutive rate reduction serves as a massive operational tailwind. Memory chip production requires tens of billions in annual capital expenditures to construct fabs and acquire advanced lithography tools.

Lower benchmark rates reduce the cost of servicing the debt required to fund this infrastructure, directly boosting margins and free cash flow.

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Additionally, the Fed's updated economic projections offer a bullish demand signal: officials upgraded the 2025 real GDP growth forecast to 1.7% and lowered 2025 PCE inflation expectations to 2.9%. A stronger economic backdrop supports cyclical demand for memory chips in consumer devices and AI data centers.

Although the FOMC signaled a more patient stance for 2026, the immediate reduction in borrowing costs allows Micron to finance R&D cheaply while selling into a strengthening economy.

Benzinga Edge Rankings: Recent Benzinga Edge data highlights the stock’s underlying strength, revealing a Growth score of 97.30 and a Momentum score of 96.27, suggesting a superior earnings trajectory and price action relative to the market.

MU Price Action: Micron Technology shares closed Wednesday up 4.47% at $263.71. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Currently, Micron is trading approximately 21% above its 50-day moving average of $217.63 and about 94.7% above its 200-day moving average of $135.25. Such a substantial premium over both moving averages indicates a strong bullish trend, suggesting that the stock has gained considerable traction in the market.

The 52-week range of $61.54 to $264.75 highlights the dramatic recovery and growth Micron has experienced, positioning it well within the upper echelon of its trading history.

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