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Micron Technology’s shares surged in intraday trading on Monday after Baird upgraded the stock and increased its price target, citing significant upside opportunities for the semiconductor maker. The upgrade came after Baird Senior Research Analyst Tristan Gerra noted that DRAM chip pricing has been increasing and supply growth is expected to slow.
Gerra stated that Micron shares appear attractive after a recent pullback, despite accelerating demand trends for DRAM chips. He mentioned that DRAM chip pricing is stronger than expected and supply growth is projected to decrease across the industry. Gerra also acknowledged that 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.