Micron Technology should benefit from multiple quarters of double-digit price increases for its memory chips, a Wall Street analyst said in a client note Monday. Micron stock hit an all-time high after the report.
Morgan Stanley analyst Joseph Moore upgraded Micron stock to overweight, or buy, from equal-weight, or neutral. He also hiked his price target to 220 from 160.
On the stock market today, Micron stock rose 1.7% to close at 190.96. Earlier in the session, it notched a record high of 201.
"Micron is pushing the envelope on valuation as the group rallies, but we believe we are looking at multiple quarters of double-digit price increases which can lead to substantially higher earnings power — and resolve any lingering questions on specialty high-bandwidth memory for AI," Moore said.
Moore admitted he was late with his upgrade, titling his report, "Better late than never."
Micron stock scored a flurry of price-target hikes after the Boise, Idaho-based company delivered a beat-and-raise quarterly report on Sept. 23. At least 18 analysts raised their price targets on Micron stock after its fiscal fourth-quarter report.
Demand for DRAM and Nand memory chips continues to strengthen, with buyers showing concern over supply availability through 2026 amid robust server and storage needs, Moore said.
"We continue to value Micron on through-cycle metrics, and a higher potential peak with AI as the principle driver, causing us to raise the multiple and EPS," Moore said.
Micron stock is on three IBD lists: IBD 50, Leaderboard and Tech Leaders.
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