Micron Technology (NASDAQ:MU) shares rose almost 2% in pre-market buying and selling on Monday as Deutsche Bank upgraded the inventory, citing “inflecting fundamentals” within the begin of the semiconductor cycle.
Analyst Sidney Ho raised the agency’s ranking on Micron (MU) shares to purchase from maintain, noting that costs have began to enhance resulting from current power for synthetic intelligence servers, which have fueled the expansion of high-bandwidth reminiscence and DDR5.
“Our recent checks with the supply chain suggest that the price increases are sustainable and should accelerate in the next two quarters given the limited supply growth,” Ho wrote in an investor notice.
Ho identified that there was a current strengthening in dynamic random entry reminiscence costs, which may very well be the start of an upcycle. “We note that, historically, memory upcycles lasted 4-6 quarters,” Ho added.
The analyst additionally stated there may very well be additional appreciation in Micron’s (MU) shares as estimates enhance and the valuation a number of expands.
Analysts are largely cautious on Micron (MU). It has a HOLD ranking from Seeking Alpha authors, whereas Wall Street analysts charge it a BUY. Conversely, Seeking Alpha’s quant system, which persistently beats the market, charges MU a HOLD.