This article first appeared on GuruFocus.
Micron Technology (NASDAQ:MU) got bullish views after Needham lifted its price target on the memory chip maker ahead of quarterly results due June 24. Micron Technology has become a key name in the AI memory trade.
Micron Technology was said by analyst N. Quinn Bolton to be benefiting from firmer memory-market conditions over the past three months, helped by steady demand, healthier pricing and limited new supply. He said those trends may support the sector for a longer stretch than previously expected, with Micron Technology among the main beneficiaries.
Micron Technology also may gain from long-term supply agreements that are giving chip makers better visibility into future orders. Bolton said that visibility, along with the role of memory in artificial intelligence systems, could justify higher valuation for memory stocks and improve sentiment toward Micron Technology.
Needham raised its price target on Micron Technology to $1,550 from $500 and kept a Buy rating. Micron Technology’s June 24 results will offer a fresh read on whether the backdrop is still improving and whether investors keep paying for the memory cycle.