Micron Technology Inc.'s stock is starting the year 2022 on a good note as it heads toward its first record close in more than two decades.
The shares of Micron MU, recently changed hands at $96.78 Wednesday afternoon, put them on track to surpass the record close of $96.56 that they established on July 14, 2000, according to Dow Jones Market Data.
Micron shares are poised to rise for the third consecutive trading session and continue their strong recent rally. The chip maker's stock has gained 38% over the past three months, due to optimism about improving trends in the memory market.
The PHLX Semiconductor Index SOX has dropped about 15% over the past three months, and the S&P 500 Index SPX has gained 9.9%.
Evercore ISI analyst C.J. Muse chimed in Wednesday with an upbeat take on memory dynamics after a recent conversation with the company's chief financial officer.
Long-term agreements that cover 75% of Micron's revenues are helping provide excellent visibility to management and, when coupled with a generally lean inventories, continue to point to the February quarter as the bottom with clear line of sight to acceleration into Micron s 2 HFY 22, and the need to comply with new regulations around workplace staffing to help curb the spread of the disease, he wrote in a note titled: Visibility To A Bottom Intensifying Muse.
We note that Samsung's Xi facility manufactures front-end NAND wafers, while Micron s is used for back-end testing and assembly, which they noted they can flexibly shift around their global footprint he wrote. Muse pointed out management's expectations for a balanced supply and demand across DRAM and NAND throughout the calendar year. If it proves true, he wrote that it would be a positive for memory stocks.