On Monday, Micron Technology’s shares surged in intraday trading after Baird upgraded the stock and raised its price target. This was due to significant upside opportunities for the semiconductor maker, according to Baird Senior Research Analyst Tristan Gerra.
Gerra noted that DRAM chip pricing has been increasing and supply growth is expected to slow. He stated that Micron shares appear attractive after a recent pullback, despite accelerating demand trends for DRAM chips. He also mentioned that DRAM chip pricing is stronger than expected and supply growth is projected to decrease across the industry.
Micron was upgraded from “neutral” to “outperform” by Baird, with a new price target of $150 per share from $115. This added Micron to its list of top semiconductor ideas. Gerra acknowledged that the upgrade should have come sooner, as Baird was “catching the train a bit late.”
As of 1:46 p.m. ET on Monday, shares of Micron Technology rose 4.8% to $120.18, having reached an all-time high of $130.54 on April 4 before slightly retracting. The stock has increased by over 40% so far this year.
