Despite a bearish backdrop for tech stocks, Micron (MU +0.62%) is marching higher in Tuesday's trading. The memory-chip company's share price was up 0.8% as of 3:15 p.m. ET. Meanwhile, the S&P 500 had fallen 2.1%, and the Nasdaq Composite was down 2.4%. The stock had been up as much as 5.2% earlier in trading.
Tech stocks are in retreat today due to dynamics related to the U.S.'s attempts to acquire Greenland. Excitement surrounding Micron's opportunities in the artificial intelligence (AI) chip market are allowing the stock to defy gravity.
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Analysts see strong tailwinds for Micron
On Sunday, Counterpoint Research published a new report on Micron stock that outlined a bullish outlook for memory-chip pricing. Counterpoint's report suggests that memory-chip prices will continue to rise in the near term, and that the extent of previous pricing increases was not reflected in Micron's most recent quarterly report. Prices are expected to continue rising in subsequent quarters, and Micron looks poised to set new revenue records.
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Micron got two price-target increases today
Stifel published new coverage on Micron today, maintaining a buy rating on the stock and raising its one-year price target from $300 per share to $360 per share. Stifel analyst Brian Chin pointed to Micron's acquisition of a chip fabrication plant from Powerchip Semiconductor and supply constrained memory-chip market as reasons for the upgrade.
TD Cowen also published a note on Micron before the market opened this morning. The firm maintained a buy rating on the stock and set a new price target of $450 per share -- up from its previous target of $300 per share. TD's analysts think that Micron will continue to see explosive earnings growth this year, and market dynamics appear to support that thesis.
