Buy hot chip stock Micron on rising flash memory pricing, analyst says

• Mizuho Securities recommends Micron shares because higher memory product pricing will lead to strong results later this year.
• The firm reiterates its $35 price target for Micron, representing 14 percent upside from Tuesday's close.

Kai Pfaffenbach | Reuters

Investors should buy Micron Technology shares because higher memory product pricing will lead to strong results later this year, according to Mizuho Securities, which reiterated its buy rating on the chipmaker.

"Storage SSD [solid-state drive] pricing [is] continuing to trend up, mirroring underlying NAND tightness and creating a tail wind for MU," analyst Vijay Rakesh wrote in a note to clients Tuesday. "We believe strong memory and storage trends in SSD, DRAM/NAND positions MU … well into 2H [second half of the year]."

Micron shares are up 40 percent this year through Tuesday compared with the S&P 500's 8 percent return.