Micron Stock Rockets after Bernstein Turns Positive on Memory Industry

Analyst isn’t too worried about the potential impacts of macro issues on the memory market

[ABS News Service/19.03.2022]

Shares of Micron Technology Inc. were flying Wednesday after a Bernstein analyst forecast a rosier landscape ahead for the memory industry.

Bernstein’s Mark Li expects that prices for dynamic random-access memory (DRAM) could bottom in the second or third quarter of the calendar year, one reason why he’s become bullish on shares of Samsung Electronics Co. Ltd. 005930, SK Hynix Inc. 000660 , and Micron MU . He upgraded all three stocks to outperform Wednesday.

“[M]acro concerns have prompted a selloff, but a correction to the memory market, if any, won’t be prolonged & won’t change the structure,” Li wrote in his note to clients.

The stock was up roughly 8% in Wednesday’s session. Micron shares are off about 19% from their record close achieved in January.