Micron Technology Inc (NASDAQ:MU) shares are trading higher after Baird analyst Tristan Gerra upgraded the stock from Neutral to Outperform and raised its price target from $115 to $150.

Citi analyst Christopher Danely remains bullish on the U.S. semiconductor sector. His top pick remains Micron Technology, Inc (NASDAQ:MU)

with other Buy-rated names, including Advanced Micro Devices, Inc (NASDAQ:AMD), Broadcom Inc (NASDAQ:AVGO), Analog Devices, Inc (NASDAQ:ADI), Microchip Technology Inc (NASDAQ:MCHP), and ON Semiconductor Corp (NASDAQ:ON).

Last Friday afternoon, the SIA announced March monthly sales of $50.8 billion (up 16.4% month-over-month), above the analyst's estimate of $50.1 billion (up 14.8% M/M) and seasonality of up 12.0% M/M driven by above-seasonal sales across all products, most notably from analog and microcontrollers, Danely noted.

Also Read: Nvidia, Broadcom Lead AI Charge: BofA Analyst Tips AMD, Micron as Emerging Contenders in Explosive Market Growth

He said analog and microcontroller units were up roughly 50% M/M, well above seasonality of up roughly 20% M/M.

This data, together with recent commentary from the analog companies, supports Danely's view of an analog inventory replenishment in the second half of 2024.

Danely maintained his 2024 semi sales forecast of up 11% Y/Y.

Analysts have previously forecasted Micron's upside from its high-bandwidth memory (HBM) market moat. They also projected upside from strong DRAM pricing and shipments of higher-priced, higher-margin and increasing AI exposure.

Micron stock gained 97% in the last 12 months. Investors can gain exposure to the stock via REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) and Invesco Semiconductors ETF (NYSE:PSI).

Price Action: MU shares traded higher by 4.75% at $120.15 on the last check Monday.

Also Read: Micron Technology Poised for Growth On Strong AI Demand As Industry Enters The Most Significant Memory Cycle: Analyst

Photo courtesy of Micron