On Monday, Micron Technology’s shares surged after Baird upgraded the stock and raised its price target. The upgrade was driven by significant upside opportunities for the semiconductor maker, as noted by Senior Research Analyst Tristan Gerra.
Gerra stated that DRAM chip pricing has been increasing and supply growth is expected to slow. He also pointed out that Micron shares appear attractive after a recent pullback, despite accelerating demand trends for DRAM chips. Gerra mentioned that DRAM chip pricing is stronger than expected and supply growth is projected to decrease across the industry.
Baird upgraded Micron to “outperform” from “neutral” and increased the price target to $150 per share from $115, adding Micron to its list of top semiconductor ideas. The upgrade should have come sooner, as Baird was “catching the train a bit late.”
Shares of Micron Technology rose 4.8% to $120.18 as of 1:46 p.m. ET on Monday, 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, making it one of the standout performers in the tech industry.