Micron stock is having a massive day on the market.
Micron (MU +10.04%) stock is moving higher in Wednesday’s trading. The memory-chip company’s share price was up 9.7% as of 2:45 p.m. ET amid flat trading for both the S&P 500 and the Nasdaq Composite.
Micron is getting a valuation boost today thanks to bullish analyst coverage. The stock is also seeing bullish momentum in conjunction with recent comments from one of the company’s biggest competitors in the memory-chip market.
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Deutsche Bank raises price target for Micron stock
Deutsche Bank published new coverage on Micron yesterday and reiterated a buy rating on the stock. The firm’s analysts also raised their one-year price target on the stock from $300 per share to $500 per share, citing a favorable outlook for margins driven by high demand for artificial intelligence (AI) memory chips. As of this writing, Deutsche Bank’s new price target implies additional upside of roughly 22%.
Today’s Change
(10.04%) $37.48
Current Price
$410.73
Key Data Points
Market Cap
$420B
Day’s Range
$386.73 – $414.15
52wk Range
$61.54 – $455.50
Volume
2.1M
Avg Vol
32M
Gross Margin
45.53%
Dividend Yield
0.12%
Demand for memory chips looks poised to remain high
In addition to Deutsche Bank’s new price target, Micron stock is likely also getting a lift from comments made by the chief technology officer of Samsung Electronics’ chip unit. Speaking at the Semicon trade show today, Song Jai-hyuk said that he expected that high demand for memory chips would likely continue through 2026 and extend into next year. While Micron and Samsung are competitors, sky-high demand for memory chips used in AI processors and data center applications is benefiting both companies and is on track to continue lifting sales and earnings.
Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
