Needham top analyst Rajvindra Gill is throwing a bullish parade for Micron Technology, Inc. (NASDAQ:MU) in a recent research report, upgrading in a major leap from an Underperform rating to a Buy rating on shares of MU. Additionally, the analyst boosts the price target from NA to $33, which implies a close to 44% upside from where the stock is currently trading.

Gill asserts, “We believe MU has regained its customer positioning in 20nm, is successfully migrating to 3D NAND (2nd gen 64-layer) and is benefiting from a substantially better pricing environment in DRAM. The key question is: Are we returning back to the 2014 cycle where GMs peaked at 35.8% and the stock hit $36.50? We think so. Unlike in ’14, DRAM products are targeting more than just PCs — cloud computing, data centers, networking, graphics and auto/ADAS. Demand for DRAM is expected to grow 20-25% Y/Y vs supply growth of 15-20%.”

The chip giant gave investors cause to cheer with a “significant beat and raise” with its first fiscal quarter results for 2017, from revenue on a 23% quarter-over-quarter rise to $3.97 billion, outclassing consensus of $3.95 billion, to non-GAAP EPS of $0.32 that solidly topped the consensus forecast of $0.26. The analyst attributes the revenue to a surge in both DRAM volume of 18% as well as NAND of 26% coupled with a 5% rise in DRAM’s ASP. GMs hit 26%, also outperforming consensus of 25.2%, thanks to “a strengthening NAND and DRAM demand environment.”

“On the NAND side, demand has seen a huge increase (40-45% demand bit growth) fueled by adoption of enterprise SSDs and mobile storage. With cost conversions underway both in DRAM and 3D NAND, we think MU could approach GMs of ~36% late-CY17 and see earnings of $3.30,” Gill concludes, believing 2017 could be the year the giant beats its prime back in 2014. Ultimately, Gill is encouraged, with newfound¬†confidence¬†that all signs point positively for the stock.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Rajvindra Gill has achieved a ranking of #73 out of 4,295 analysts. Gill upholds a 60% success rate and realizes 14.1% in his annual returns. However, when recommending MU, Gill loses 34.0% in average profits on the stock.

TipRanks analytics indicate MU as a Strong Buy. Based on 24 analysts polled by TipRanks in the last 3 months, 21 rate a Buy on Micron, 2 remain sidelined, and 1 is bearish on the stock. The 12-month average price target stands at $25.14, marking a 9% upside from where the shares last closed.