Micron jumps on Bernstein upgrade, firm expects DRAM market to bottom soon
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Micron Technology (NASDAQ:MU) shares jumped in early trading on Wednesday after investment firm Bernstein upgraded the semiconductor maker, noting that while macro issues have caused a sell-off in tech stocks, the dynamic random access memory market is expected to "bottom" in the next couple of quarters.
Analyst Mark Li raised his rating to outperform from underperform and boosted his target price to $94, up from $58, noting that the Russian invasion of Ukraine is not expected to cause a "notable" disruption in supply or hurt demand and even with the current oversupply in the DRAM market, it's likely to balance out in the next quarter or two and prices will rebound.
Li also noted that China has yet to break the DRAM oligopoly, which includes Micron (MU), Samsung (OTC:SSNLF) and SK hynix, which should help the market. 
"Our latest checks indicated continued struggle in 17 [nanometer] with poor yield and further schedule delay," Li wrote. 
Micron (MU) shares rose more than 8% to $79 in early trading on Wednesday.
Li also upgraded shares of Samsung and SK hynix on Wednesday. 
In addition, Li noted that Micron (MU) is likely to see prices for DRAM rise later this year, going into 2023 before declining in 2024. "Supply discipline will keep the decline mild so that shipment increase still brings revenue and earnings growth then," Li added.
Last month, Citigroup reiterated its buy rating on Micron (MU), noting that dynamic random access memory pricing could be higher in the second half of the year.