Micron Technology Shares Rise After Citi Raises Price Target
Shares of Micron Technology saw significant gains this week after analysts at Citi raised their price target for the company. On Thursday, the stock surged by about 8%, following the announcement from Citi, which also kept its 'buy' rating on Micron.
Citi analysts pointed to strong demand for dynamic random-access memory (DRAM) chips and Micron's role in the growing artificial intelligence sector as reasons for the higher price target. The new target is set at $175 per share.
Micron's stock movement also came as technology shares led broader gains in the US stock market, with the S&P 500 reaching a new high. Investor optimism was further supported by expectations of a potential interest rate cut from the Federal Reserve.
The stock rose after Citi analysts increased their price target and highlighted strong demand for Micron's chips, especially in artificial intelligence.
A price target increase means analysts believe the stock could be worth more in the future, which can encourage more investors to buy it.
A rate cut can make borrowing cheaper and boost spending and investment, which often helps companies and raises stock prices.
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