Major U.S. stock indices opened higher on Monday. As tensions between the U.S. and Iran eased, concerns over oil prices and inflation subsided, leading to a notable recovery in risk appetite for the technology sector. Micron Technology (MU.US) shares surged at the open, gaining more than 9%.

The move follows significant price target increases from two investment banks. TD Cowen raised its target for Micron Technology from $660 to $1,500. Concurrently, RBC Capital Markets substantially increased its target from $525 to $1,200.

In its report, RBC Capital Markets stated that Micron Technology's stock deserves a higher valuation, driven by AI demand and a strengthening memory cycle due to tight industry supply. The firm noted that AI-related spending from hyperscale companies is expected to continue through 2027, fueling robust memory demand and perpetuating supply shortages in the end market.