Micron Technology Inc.'s shares jumped to a multi-year high Monday after two analysts raised their estimates on the chip maker's stock, citing improving prices.

THE SPARK: Jefferies analysts Sundeep Bajikar and Mark Lipacis said that chip prices are up from a slump last year and they expect stable pricing to continue. They increased the price target on Micron stock to $18 from $15.

Citi analyst Glen Yeung said that memory prices are likely to continue to rise. Those improvements, along with the approaching completion of its acquisition of Japanese chipmaker Elpida Memory Inc., should benefit Micron.

THE BIG PICTURE: Micron, based in Boise, Idaho, makes dynamic random access memory items, used often in personal computers, and NAND flash memory products, which are used in digital devices and smartphones.

THE ANALYSIS: The Jefferies analysts said that mobile DRAM products appear to be in short supply, which gives manufacturers an edge in pricing. Additionally, they said that Intel, Microsoft and other PC makers' increased focus on making lower-cost notebooks could stimulate demand for personal computers, which could also benefit Micron.

Citi analyst Glen Yeung said the final hurdle in Micron's proposed merger with Elpida appears to have been crossed Friday as there were no objections in U.S. bankruptcy court to its restructuring plan.

SHARE ACTION: Up 49 cents, or 3.8 percent, to close at $13.25. The stock hit $13.50 earlier in the day, the highest level since 2007.