Micron's stock price edged up 0.34% to $49.99 after J.P. Morgan boosted its price target to $65 from $50, with analyst Harlan Sur affirming his overweight rating on the tech stock, according to Bloomberg.
J.P. Morgan sees a smoother-than-expected road ahead for Micron, which is weathering tougher times in the chip sector, with the chipmaker boosted by better-than-expected pricing for its NAND chips. Micron's NAND flash memory chips make up more than 25% of the chip maker's sales, according to Bloomberg.
Meanwhile, while Micron is struggling with declining demand for its DRAM chips for primary system memory, which account for 70% of its revenue, the fall-off has been in line with expectations, the analyst wrote.
Analysts at Longbow and KeyBanc Capital Markets also recently published bullish notes on Micron, with Longbow analyst Nikolay Todorov arguing the beleaguered chip sector is "turning a corner."
The chip market is burning through excess inventory faster than expected, Todorov wrote, arguing the sector is "turning a corner," with rising demand driving an increase in pricing. Longbow upgraded its rating on Micron's stock to buy from neutral while KeyBanc analyst Weston Twigg cited "increasing signs of stabilization" in the semiconductor sector.