Micron Technology (MU) shares received a price target boost from Citi, lifting its target from $95 to $150. The bank expects the chipmaker to deliver strong guidance and outlook ahead of its second quarter results.

Yahoo Finance's Julie Hyman and Josh Lipton breaks down the details.

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Editor's note: This article was written by Angel Smith

Video Transcript

JULIE HYMAN: Let's talk about another one we're watching today. That is Citi propping up shares of Micron after lifting its target price on the stock. The move coming ahead of Micron's earnings next week. Citi expecting good results and guidance from the chip maker here. The shares up some 2% in today's session. And a lot of this has to do with potentially new products coming to market that are going to be helpful here, including some of its higher bandwidth memory chips that the company is shipping and its ability to tap into some of the demand for AI with some of those chips.

JOSH LIPTON: Yeah. So when they report next week, he's saying, listen, I think they're going to-- I think they were going to report, and they're going to beat. He thinks they're going to increase guidance. So he sees a lot of reasons for optimism here. He calls out strong DRAM pricing. He says they're shipping higher priced, higher margin products. By the way, the team at Cowen also weighed in on Micron today, also positive. They boosted their price target to $120. And stock is already up about 10% this year, Julie. It's up about 70% over the past 12 months. So expectations riding high into this print next week.

JULIE HYMAN: Yeah. One of the other details here that I thought was interesting, average selling prices according to the Citi note for DRAM, which is a type of-- of memory chips. Average selling prices will increase 52% in 2024 according to Citi because of limited production growth and because of demand surrounding AI. So that would be quite a boost in prices if that actually materializes.

JOSH LIPTON: The key here to note that Micron shipping with NVIDIA systems. So you're printing some of that AI over it.

JULIE HYMAN: OK. I love the magic.