Micron Technology registered a remarkable surge in its share price during the intraday trading session on Monday following an upgrade from Baird, which also revised its price target for the company. Tristan Gerra, a Senior Research Analyst at Baird, expressed optimism for Micron’s future, citing “meaningful upside opportunities ahead.”
Baird’s positive evaluation of Micron was influenced by several factors, with Gerra highlighting the increasing prices of DRAM chips alongside an anticipated slowdown in supply growth. As a result, Baird upgraded Micron’s rating to “outperform” from “neutral” and set the new price target at $150 per share, an increase from the previous $115. Furthermore, Baird included Micron in its list of “top semiconductor ideas,” aligning it with industry giants such as Nvidia, Broadcom, and Semtech.
Gerra underscored that the recent decline in Micron’s shares, despite the heightened demand for DRAM chips, presents an attractive opportunity for investors. He pointed out that the strength of DRAM chip pricing has surpassed expectations, combined with the expected industry-wide deceleration in supply growth. Gerra candidly acknowledged that Baird’s decision to upgrade Micron should have been made sooner, admitting that they were “catching the train a bit late.”
As of 1:46 p.m. ET on Monday, Micron Technology’s shares had increased by 4.8% to $120.18, following a high of $130.54 on April 4. Despite a slight decline from the all-time high, the company’s shares have seen a remarkable rise of over 40% throughout the year.
In conclusion, despite the tardiness of Baird’s upgrade, the positive outlook for Micron Technology has sparked significant interest among investors. With the semiconductor industry experiencing favourable market conditions and Micron’s promising prospects, it is evident that the company’s stock is worth monitoring closely in the forthcoming months.