Keep an eye on memory stocks, like Micron Technology (MU).

The stock gapped up after Samsung said it would cut memory production, which is seen as a “huge positive” for the industry. “This is a big deal,” said Citi analysts, who remind investors that Samsung has a ~50% market share in the DRAM (dynamic random-access memory) market.

“We believe the cuts to both capex and production by the three DRAM providers should help ensure a DRAM recovery beginning in the 2H23, especially considering PC demand (roughly 10% of DRAM) appears to have stabilized and we expect both data center demand (roughly 40% of DRAM) and handset demand (roughly 30% of DRAM) to both stabilize in 2H23.”

Goldman Sachs likes the news too, hiking its Micron price target to $70.

At the moment, Micron is struggling at triple top around $65 a share.  However, if it can break above that resistance, it could potentially refill its bearish gap around $70 a share.