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On Monday, Baird upgraded Micron Technology and raised its price target to $150 per share. This announcement caused shares of Micron to surge in intraday trading. Baird Senior Research Analyst Tristan Gerra stated that DRAM chip pricing has been increasing, with supply growth expected to slow.
Gerra noted that Micron shares appear attractive after a recent pullback, despite accelerating demand trends for DRAM chips. He also pointed out that the upgrade should have come sooner, as Baird was “catching the train a bit late.” Despite this, Gerra mentioned that the upgrade was well-timed as it came at a time when DRAM chip pricing is stronger than expected and supply growth is projected to decrease across the industry.
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 top performers in the semiconductor industry.