Shares of memory and storage solutions provider Micron Technology (NASDAQ:MU) are on the rise today after Samsung (GB:SMSN) stated plans to lower memory chip output.
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Samsung has seen a contraction in its bottom line and is now cutting chip output, “Especially in products with supply secured by a meaningful level.”
Chipmakers are witnessing lower prices and tepid demand and the development is seen as a key positive as supply-demand dynamics can turn favorable at a faster pace for the industry with a recovery in sight later this year.
Goldman Sachs analyst Toshiya Hari has upped the price target on MU to $70 from $65 and sees the production cut as a positive, adding, “The announcement is a positive surprise and bodes well for MU.”
Overall, the Street has a $68.61 consensus price target on MU implying a 17.16% potential upside in the stock. That’s on top of a 16.3% rise in MU shares so far in 2023.
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