Micron's (MU) stock is riding high off of Monday's buyback news.

Shares finished up 6.4% Tuesday after the company announced a $10 billion share repurchase program starting in the fiscal 2019 year, which starts in September, at its annual investor day.

Stifel analyst Kevin Cassidy said Tuesday morning that Micron's soaring stock is experiencing a "relief rally" in part because there has been so much negative sentiment around the future of the memory industry. On Monday during the day, shares rose almost 4% on cooling trade tensions with China, which could help smooth the way to more consolidation in the chip sector, as well as news that the company had increased its guidance for the current quarter.

"The memory industry has been cyclical in the past, and we would say it's because companies were managing for market share gains and increasing scale," Cassidy said. Now that the industry has consolidated some, companies are no longer fighting for market share.

"Now they're managing the company for profitability," he said. For a company such as Micron, which Cassidy said has not been profitable for more than 30 years, "it shows that management is very confident."

Even though shares has popped in the past day, Cassidy said the stock is not overvalued, as Micron shares are still trading at only about five times the firm's forward P/E while the semiconductor industry trades at about 15 times.

Separately on Monday, Rosenblatt analyst Hans Mosesmann reiterated his buy rating and lifted his price target to a Wall Street analyst high of $115, writing in a note that Micron executed "one of its best investor days we can remember."

Since the beginning of this year, Micron shares have increased 45% and have more than doubled over the last 12 months.

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