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Are the Chips Finally Stacking in Micron's Favor?

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Micron Technology  (MU) - Get Micron Technology, Inc. Report is finally getting a little bit of positive momentum at the proverbial table, with two analysts issuing upgrades on the company’s stock as well as boosting their one-year price targets on what they see as better times ahead for chip makers – and for Micron.

In a note to clients on Monday, Susquehanna Financial analyst Mehdi Hosseini lifted his rating on Micron to positive from neutral and more telling, nearly doubled his one-year price target to $85 from $45 on what he sees as “increased prospects” of a sustainable rebound in global demand for memory chips, starting in the spring of 2020.

Meantime, Morgan Stanley analyst Joseph Moore reiterated his equal-weight rating on Micron on Monday and raised his 12-month price target to a more conservative $56 from $48 for much of the same reasons: a cyclical recovery chip demand driven by a rebound in manufacturing – and aided by an at least-partial resolution to the U.S.-China trade war.

Susquehanna and Morgan Stanley aren’t the only ones feeling positive about Micron’s upcoming earnings announcement and prospects in 2020.

TheStreet contributor Michael Wiggins De Oliveira also believes that too much negative news is baked into the stock price – and the industry in general – and that the memory cycle is poised to take off thanks to demand for memory in artificial intelligence, 5G, machine learning, and autonomous vehicles that will be “…like nothing we have witnessed before.”

Micron reports its fiscal first-quarter earnings on Wednesday. Analysts polled by FactSet are currently expecting per-share earnings of 47 cents on revenue of $5 billion. 

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