DA starts Micron with Buy on ‘longer-than-usual’ memory cycle

DA Davidson initiated coverage of Micron (MU) with a Buy rating and $1,000 price target The stock in premarket trading is down 3%, or $15.99, to $508.57. The firm says AI is creating a “longer-than-usual memory cycle as compute deployment and demand generation exist in a positive feedback loop.” This creates a structurally higher ceiling for memory pricing and demand, the analyst tells investors in a research note. DA believes the market is underestimating Micron’s demand environment, especially relative to the rest of the semiconductor complex. It sees “meaningful upside” to the shares.