An employee checks a silicon wafer on the production line of Micron's plant in Asia.

Micron chip sales will increase later this year as companies increase their technology spending budgets, according to J.P. Morgan.

The firm reiterated its overweight rating for the company's shares, predicting strong demand for its memory chips from cloud computing vendors.

"As we enter the seasonally strong 2H of the year, we expect [memory] contract pricing to remain strong for DRAM. In NAND [flash memory], with price elasticity, we see solid demand pull through quickly absorbing any excess supply," analyst Harlan Sur said in a note to clients Thursday. "We remain OW Micron on solid execution amid constructive industry fundamentals."