Micron Technology, Inc. (NASDAQ:MU) shares rallied Monday as investors reacted to Samsung’s plan to cut memory production.
The South Korean tech giant’s announcement Friday that it would slow down memory production is seen as big win for other companies in the sector, including Micron. Samsung currently has a roughly 50% market share in the DRAM (dynamic random-access memory) market.
Goldman Sachs (NYSE:GS) analysts said Samsung’s announcement is a “positive surprise and bodes well for Buy-rated MU,” in a note to clients. The analysts raised their price target by $5 per share to $70.
“We believe ongoing, unprecedented and broad-based production cuts — which now includes participation from the industry’s largest producer, Samsung — coupled with stabilization in the demand environment will drive a recovery in fundamentals in 2024 that exceed current Street consensus,” the analysts said.
Micron shares jumped more than 7% to $62.93.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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