Micron Gets a Bullish Upgrade

Shares of Micron Technology (NASDAQ: MU) surged ~6% premarket Monday after Morgan Stanley upgraded the stock from Equal-weight to Overweight. The firm also raised its price target to $220 from $160, highlighting Micron’s improving memory market fundamentals.

Analyst Commentary

Lead analyst Joseph Moore wrote:
“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 lingering questions on specialty high-bandwidth memory for AI.”
Key drivers:

DRAM pricing momentum continues to surprise positively.
HBM (High Bandwidth Memory) concerns are easing as DRAM market strength supports better pricing negotiations.
NAND and DRAM checks show continued inflection, with buyers anxious about availability through 2026.

Memory Market Dynamics

DRAM and NAND, the two core memory types, are both seeing rising demand.
Server and storage demand is driving stronger purchasing trends.
DDR5 spot prices are up 15% since Micron’s last guidance.
Purchasing contacts suggest tight DRAM supply could last several quarters, fueling higher pricing power.

Investment Outlook

Morgan Stanley expects multiple quarters of upward EPS revisions for Micron.
Despite MU’s strong run, analysts see further upside potential as pricing strength continues.
Moore noted valuation looks expensive on long-term cycle metrics, but near-term conviction from buyers remains “very high.”