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In intraday trading on Monday, shares of Micron Technology surged after Baird upgraded the stock and raised its price target, citing significant upside opportunities for the semiconductor maker.
Baird Senior Research Analyst Tristan Gerra noted that DRAM chip pricing has been increasing and supply growth is expected to slow. He mentioned that Micron shares appear attractive after a recent pullback, despite accelerating demand trends for DRAM chips. Gerra also acknowledged that the upgrade should have come sooner, as Baird was “catching the train a bit late.”
Gerra stated that DRAM chip pricing is stronger than expected and supply growth is projected to decrease across the industry. He added Micron to his list of top semiconductor ideas. The upgrade caused Micron shares to rise 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.
