CNBC Pro

This chip stock will surge this year on better profitability, Credit Suisse says

Share
Micron Technology Double-Data-Rate Synchronous Random-Access Memory (SDRAM) chip
Tomohiro Ohsumi | Bloomberg | Getty Images

Investors should buy Micron Technology shares because the company's earnings this year will come in above Wall Street's expectations, according to Credit Suisse, which reaffirmed its outperform rating on the memory chipmaker.

"We continue to see fundamentals for MU improving from here … we expect the pricing environment to remain healthy through 2H17 and drive margin improvement for MU," analyst John Pitzer wrote in a note to clients Tuesday. "Memory is a different industry now – higher concentration than ever … more diversified demand, and slowing supply – we argue margins are more resilient now than in the past."

The company will report fiscal second-quarter earnings on Thursday, Mar. 23.

More In Pro News and Analysis

CNBC ProThe stock market continues to keep sellers at bay, offering few reasons to fight the tape
CNBC ProThese stocks are ready to rally as the earnings recovery kicks in, analysts say
CNBC ProCathie Wood talks about her top disruptive ideas, including Netflix and Tesla