Micron Technology snaps up 7% on SanDisk results

On Friday, SanDisk (SNDK) raised its forecast for the March quarter and made positive noises about the memory chip market in general. Today, the stock was up nearly 12% to $32.63.

This was seen as good news for sector stocks. A broker note yesterday from Lazard Capital raised revenue and profit forecasts for Micron’s second quarter which ends in February on the basis of solid NAND and DRAM chip demand. Revenue forecast was increased to $1.848 billion from $1.820 billion and EPS forecast increases 7 cents to 30 cents. For 2010, Lazard believes Micron Technology should produce revenues of $7.49 billion and EPS of $1.06 a share, from $7.42 billion and 98 cents.The stock has a $18 target, and is currently $9.7, implying a 100% upside.

Given much DRAM chip demand is created by PC sales, the outlook for stocks such as Microsoft and Hewlett Packard looks strong.