Micron Technology (MU) stock has gained 124% so far this year, supported by improving memory chip prices and rising AI-related demand. In a new report, top Morgan Stanley analyst Joseph Moore upgraded the memory chipmaker to Overweight (equivalent to Buy) from Equalweight (equivalent to Neutral), reflecting growing confidence in Micron’s pricing power and demand outlook. He also lifted his price target to $220 from $160, suggesting 17% potential upside ahead.
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It is worth noting that Moore ranks 306 out of more than 10,050 analysts tracked by TipRanks. He has a success rate of 61%, with an average return per rating of 16% over a one-year timeframe.
Top Analyst Sees Momentum Building in Core DRAM Market
The 5-star analyst said momentum in Micron’s core DRAM business has continued to surprise, with prices rising faster than expected. He noted that earlier concerns about high-bandwidth memory (HBM) are easing as DRAM economics improve. His latest industry checks showed stronger market conditions, with potential for double-digit sequential price increases in both the fourth quarter of this year and the first quarter of next year.
The analyst added that feedback from chip buyers indicates tight DRAM supply could last for several quarters, which supports further upside for Micron.
Micron’s Outlook Still Has Room to Run
Moore believes Micron’s performance still has room to run even after recent gains, as the company benefits from rising DRAM and DDR5 prices. He highlighted that DDR5 spot prices are already up 15% since Micron’s last guidance, signaling that Wall Street’s current forecasts may be too low.
He also pointed to reports that server memory prices for DDR5 are climbing sharply, with double-digit gains expected this quarter and next. He believes these trends could push Micron’s earnings above current estimates.
For context, DRAM, or dynamic random-access memory, is a key type of computer memory used in servers and PCs, and DDR5 is its newest, faster version built for advanced workloads like AI data centers.
Moore noted that investor sentiment is still mixed, mainly because of ongoing worries about HBM costs. But as DRAM supply gets tighter and prices keep rising, he expects Micron’s core business to remain strong and earnings estimates to go up.
Is Micron a Good Stock to Buy?
Micron stock has a consensus Strong Buy rating among 27 Wall Street analysts. That rating is based on 24 Buy and three Hold recommendations assigned in the last three months. The average MU price target of $197.00 implies 4.88% upside from current levels.
