Micron Stock Can Rise 22% as Chip Prices Surge, Says Analyst
Micron Technology stock offers an attractive buying opportunity as the semiconductor industry recovers, says Citi Research.On Monday, analyst Christopher Danely reiterated his "Top Pick" Buy rating for Micron , a leading seller of DRAM memory chips, and reaffirmed his $85 price target, which implies about 22% of upside. DRAM stands for dynamic random-access memory, commonly used in desktop computers, smartphones, and servers.After meeting with clients last week, "we had a difficult time getting traction on our Buy Micron call. Investors believe that Micron's valuation already incorporates the upturn in DRAM," he wrote. "We disagree.". Micron stock is up 0.8% in Monday trading to $69.74.The analyst noted memory pricing has started to recover as the major chip makers have cut production. He now predicts memory-chip prices will rise 10% quarter over quarter in the fourth quarter, and rally 32% year-over-year in 2024.The improving trends should spark a rally in Micron's stock price as the