Shares of Micron Technology Inc. (MU) soared 7.5% in premarket trading on Thursday, reaching a 21-month high after an impressive earnings report. Micron, known for its memory chip technology and artificial intelligence applications, emerged as the top premarket performer within the Nasdaq 100 (NDX) and the PHLX Semiconductor Index (SOX). The company also became the second-biggest gainer in the S&P 500 (SPX) market.
Analysts have taken notice of Micron’s success, with a notable increase in target prices. Out of the 38 analysts surveyed by FactSet, 20 have raised their targets for Micron’s stock. The average target price has risen substantially, going from $83.52 at the end of November to $94.15 currently.
J.P. Morgan analyst Harlan Sur has been particularly bullish on Micron’s stock, reiterating his overweight rating and raising his target price to $105 from $90. Sur attributes this positive outlook to stronger demand trends and the normalization of excess customer inventories. In a note to clients, he stated, “We believe the stock should continue to outperform through 2024 as the market continues to discount improving revenue/margin/earnings power into CY25.”
Year to date, Micron’s stock has surged by an impressive 57.4%, outpacing the PHLX chip index (58.3%) and the S&P 500 (22.4%).
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