Micron Surges as Morgan Stanley Upgrades on AI Memory Demand
The bank raised its price target to $220 from $160, citing 'sold out' high-bandwidth memory as a key catalyst for future growth.
Shares of Micron Technology (MU) climbed 1.67% in recent trading after Morgan Stanley issued a significant upgrade, boosting the semiconductor firm to 'overweight' from a neutral stance. The investment bank also dramatically increased its price target on the stock to $220 from $160, signaling strong conviction in the company's prospects tied to the artificial intelligence boom.
The upgrade is anchored by what Morgan Stanley's analysts describe as a powerful and sustained wave of , a critical component for the powerful processors that train AI models. The bank's research notes that Micron is in an enviable position, with its HBM output for both calendar year 2025 and a significant portion of 2026 already being fully sold out.
According to the analyst report, the robust demand cycle is not limited to specialized memory. Morgan Stanley anticipates continued, double-digit quarterly price increases for Micron's core DRAM and NAND products, driven by supply tightness across the server and storage markets. This pricing power, combined with soaring HBM sales, is expected to fuel substantial earnings growth for Micron over the next several quarters. suggests that even after a strong run-up in the stock price this year, there is still significant upside potential.
This optimistic call comes on the heels of from Micron, where the company demonstrated impressive revenue growth led by its AI-centric cloud business. The combination of surging demand, constrained supply, and strong execution has positioned Micron as a key beneficiary of the ongoing AI infrastructure buildout. Investors will now be closely watching whether the company can continue to capitalize on this powerful secular trend and meet the market's heightened expectations.