Why Micron Stock Keeps Going Up

Micron (NASDAQ: MU) banal popped connected Friday, gaining astir 5% aft adjacent semiconductor institution Sandisk crushed its Q3 net report.

Today, shares of some fashionable machine memory-makers are soaring again, and Micron successful peculiar is up different 8.2% done 10:10 a.m. ET. Wall Street whitethorn beryllium the reason.

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Wall Street loves Sandisk (and possibly Micron?)

In back-to-back reports, archetypal Montclair, NJ-based banal probe steadfast Fox Advisors raised its terms people connected Sandisk to $1,500 a share. No sooner had it done so, reports TheFly.com, than analysts astatine Bernstein predicted Sandisk volition spell to $1,750!

Neither steadfast raised its targets connected Micron today, a Sandisk rival that builds some NAND flash and DRAM (and HBM) memory. These 2 forms of representation are complementary but not interchangeable, and their request tin turn astatine antithetic rates. According to a study by Tom's Hardware past month, for example, DRAM prices that led the complaint earlier successful the twelvemonth are expected to turn "only" 63% successful Q2, versus a 75% surge for NAND.

Bernstein agrees with reports of the NAND terms surge, and this is amended quality for Sandisk than for Micron. But it's inactive beauteous large quality for Micron, too.

What's adjacent for Micron stock?

Computer representation prices person historically been cyclical. High prices (like today's) pull contention and person producers (Micron included) to summation capableness and production, increasing proviso and driving prices little successful the aboriginal -- astatine which constituent the up rhythm ends and the down rhythm begins.

This creates hazard for investors successful some companies, but here's the thing: After surging much than 3,200% successful terms implicit the past year, Sandisk present trades astatine a heady 40 times trailing earnings. Micron, successful contrast, costs lone 25 times earnings.

For risk-averse investors, that makes Micron the safer banal to buy.

Should you bargain banal successful Micron Technology close now?

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