Melius Research analyst Ben Reitzes predicts the rally in chip stocks to continue, driven by strong demand for artificial intelligence infrastructure and sustained spending.
The analyst is especially bullish on Micron Technology Inc. (NASDAQ:MU), SanDisk Corp. (NASDAQ:SNDK) and Intel Corp. (NASDAQ:INTC). He raised the target price on the three stocks, arguing that newly signed long-term agreements are making the companies’ results easier to forecast in a historically volatile corner of tech.
Speaking on SquawkCNBC Monday, Reitzes said, “We just took our targets up on Micron and SanDisk and Intel the most in our group.” “They are signing these long-term agreements that make them more predictable and I think they get recognized for it.”
The analyst argued that as AI-driven demand keeps creating supply bottlenecks, allowing chipmakers, including Micron, SanDisk, and Intel, to capture more market value than traditional software companies or non-chip “Magnificent Seven” names.
Micron
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