Why Micron Technology (MU) Stock Is Rising Today

NEW YORK (TheStreet) -- Micron Technology (MU) shares are climbing, up 2.1% to $27.12, on Wednesday following a story in DigiTimes that DRAM chip clients are looking to sign long-term contracts with the company.

The company has a production capacity of 200,000 wafers a month, making it an attractive long-term partner for many downstream clients.

The report also states that DRAM chip prices will likely remain high through the second half of 2014 due to limited supply, further encouraging buyers to sign long-term deals with the company.

Must Read: Warren Buffett's 25 Favorite Growth Stocks 

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

Why Apple Is Increasingly Investing in Its Suppliers, Including Possibly Toshiba

Caterpillar Leads Dow to Records, S&P 500 Also at All-Time Highs

S&P 500 and Dow Score Records With Wall Street Upbeat Ahead of Fed

Nvidia Inspires Chipmaker Gains but Rest of Tech Gets Left Behind

S&P 500 and Dow on Track for Records With Markets in Good Mood Ahead of Fed