Investing.com -- Micron Technology (NASDAQ: MU) shares rose 5.75% Monday as labor unrest at Samsung Electronics and supply constraints drove optimism, with Deutsche Bank setting a $1,000 price target for the memory-chip maker, matching the Street high.

The stock closed Friday at $746.79, and the price target suggests upside of 34%.

Micron could benefit from potential disruption at its South Korean rival if talks to avoid a strike fail. Samsung’s unions are demanding the company allocate 15% of its operating profits for bonuses and are threatening a general walkout on May 21 unless a deal with management is reached. Samsung and its labor union are holding post-mediation talks this week in a final effort to reach a settlement.

A walkout would further strain a market already grappling with significant supply constraints

Deutsche Bank analyst Melissa Weathers commented following meetings with management: "We came away from meetings with the clear vision that AI is fundamentally changing many of the cyclical dynamics in the memory industry. Technologically, the value of memory has never been higher, with all layers of the memory hierarchy proving to be critical enablers of performance improvement for AI processors and model output. Demand for these AI outputs continues to grow at an extraordinary pace, with falling cost-per-token driving greater incentive to expand usage at the core as well as the edge."

Micron shares have risen 84% in the past month and 160% this year. The company and its Korean peers SK Hynix and Samsung are riding a surge of demand for memory chips to power artificial-intelligence hardware, driving up prices across the sector.