Micron Technology Inc (NASDAQ:MU) can potentially generate substantially higher earnings ahead, driven by multiple quarters of double-digit price hikes, according to Morgan Stanley.
The Micron Technology Analyst: Analyst Joseph Moore upgraded the rating from Equal-Weight to Overweight, while raising the price target from $160 to $220.
The Micron Technology Thesis: DRAM and NAND checks indicate that buyers remain concerned about chip availability through 2026, given expectations of strong server and storage demand, Moore said in the upgrade note.
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Checks suggest that DRAM availability will be tight for several quarters, potentially leading to double-digit sequential price hikes in the fourth quarter of 2025 and the first quarter of 2026, he added.
Although Micron Technology's stock has been on an uptrend, there is "more room to run," driven by continued upward revision of estimates and further improvement in sentiment, the analyst stated.
"Our industry checks show that Micron will indeed be a quarter or so behind Hynix (South Korean chipmaker) in volume shipments, but that the technology is robust, and fears that new leaders emerge seems unlikely," he further wrote.
MU Price Action: Shares of Micron Technology had risen by 2.78% to $193.06 at the time of publication on Monday.
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