In the last one-month period, Micron Technology (NASDAQ:$MU) saw the highest trade volume in the semiconductor sector. The company’s stock price jumped a whopping 18.4%, touching a new 52-week high of $35.00. Additionally, the semiconductor stock has entered the overbought zone. While you might think the stock should be losing its momentum soon, it is indicating no trends of slowing down.

Analysts are suggesting that even at $35.00, Micron is still a “buy”. The stock is at a forward PE ratio of 5.6x, which is well beneath the S&P 500 Index (SPY) ratio of 20.5x. What does this mean? The low PE ratio indicates that the stock is way less expensive than its earnings per share potential.

However, prior to Micron’s surge, investors were concerned over cooling DRAM and NAND prices due to surplus in supply. Micron stock faced equivocal resistance at $32.00 in early August.

In September, though, when two major DRAM competitors in Samsung (NASDAQ:$SSNLF) and SK Hynix increased their DRAM prices, Apple (NASDAQ:$AAPL) announced its flagship product iPhone X during its September 12th event.

Further, as Micron’s Chief Financial Officer, Ernie Maddock indicated at the Citi 2017 Global Technology Conference, Micron is insisting a similar uptrend in fiscal 2018. Analysts revised their fiscal 4Q17 earnings estimate upward for Micron twice in the last four weeks, as DRAM and NAND prices are expected to increase.

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