Micron (MU 2.82%) 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%.
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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.
