TLDR
- Morgan Stanley raises Micron price target to $325, the highest on Wall Street, representing 32% upside potential from current levels.
- DDR5 memory spot prices have tripled in one month as supply shortage conditions similar to 2018 emerge in the market.
- The firm forecasts $25 per share earnings for Micron in calendar 2026, well above current Wall Street estimates.
- DRAM price increases are running in double digits, with actual transactions occurring above those reported levels.
- Micron carries a Strong Buy rating from 27 of 30 analysts covering the stock over the past three months.
Morgan Stanley set a new Wall Street high price target for Micron Technology at $325. The investment bank also named the memory chipmaker its top pick.
The target jumped from $220 to $325. This represents 32% upside from where shares currently trade.
Analyst Joseph Moore said Micron is entering “uncharted territory” in the memory market. The company faces a supply shortage similar to 2018, but earnings are starting from a much higher level now.
DDR5 spot prices have tripled since Morgan Stanley upgraded the stock just over a month ago. Market conditions continue improving faster than expected.
Memory Market Heats Up
The DRAM market is tightening quickly. Buyers say conditions feel most like 2018, when memory prices surged on supply constraints.
However, this cycle is different. Earnings are already at record levels before the shortage fully develops.
Moore expects double-digit price increases for DRAM. He says actual transactions are happening well above those figures.
The analyst believes upward earnings revisions will continue. These could start as soon as next week as market dynamics strengthen.
Supply remains tight while demand stays strong. Moore forecasts DDR5 prices will rise again over the next two quarters.
Earnings Power Expands
Morgan Stanley now projects over $25 per share in earnings for calendar 2026. This sits well above current Wall Street consensus estimates.
The firm sees DRAM conditions leading to new earnings highs for Micron. Strong pricing power continues driving profitability higher.
Higher DDR5 margins will help offset any development costs for HBM4 technology. Moore said current pricing trends make this concern less relevant.
The analyst still views HBM as critical to Micron’s AI strategy. He expects the company to remain competitive when HBM4 chips launch.
Valuation and Consensus
Morgan Stanley acknowledges valuations across the memory sector are elevated. But the firm believes Micron hasn’t fully priced in the coming upside.
The bank expects both sentiment and earnings momentum to improve into 2026. AI demand continues fueling growth, though some uncertainty remains.
Wall Street shows strong support for the stock. Micron holds a Strong Buy consensus rating from 30 analysts.
This includes 27 Buy recommendations and three Hold ratings. All ratings were assigned in the last three months.
The average price target across Wall Street sits at $225.36. This trails Morgan Stanley’s new Street-high target by nearly $100.
Moore upgraded Micron to Overweight one month ago. Since then, memory market conditions have accelerated beyond initial expectations.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
