What's behind Micron Technology's surge on Wednesday

KeyBanc raised its price target on $NVIDIA Corp(NVDA)$ to $180 from $130 and on $Micron Technology(MU)$ to $165 from $160.

$Micron Technology(MU)$ 's stock rose in Wednesday's trading session. On Tuesday, Keybanc maintained its overweight rating for the stock and raised its target price from $160 to $165. With the ongoing artificial intelligence boom, Micron's share price has increased by more than 50% so far this year. Micron produces memory chips that support AI server GPUs, which are currently in high demand in data centers and generative AI applications.

$Micron Technology(MU)$ 1 year return vs. Other Semiconductor Stocks: $NVIDIA Corp(NVDA)$ , $Advanced Micro Devices(AMD)$ $Broadcom(AVGO)$ $Taiwan Semiconductor Manufacturing(TSM)$ $Qualcomm(QCOM)$ $Marvell Technology(MRVL)$ $Intel(INTC)$

However, not all analysts believe that the strong performance of artificial intelligence will continue indefinitely. On Monday, Citigroup analyst Drew expressed skepticism about the ability of chipmakers to continue delivering substantial earnings and advised investors to take profits and diversify their investments across the AI value chain. "We encourage investors to profit in the field of artificial intelligence," Drew stated.

Micron's stock price is above the 50-day moving average of $129.4 for the stock and is approaching the 52-week high of $157.53 reached at the end of June. The 200-day moving average is at $97.38, which is below the current price of $134.35. As of Wednesday's closing, Micron Technology's stock price increased by 4% to $136.39.