Morgan Stanley thinks Micron Technology is in the early innings of another rally. The bank upgraded shares of the semiconductor manufacturer to overweight from equal weight. Analyst Joseph Moore also hiked his price target to $220 from $160, which signals upside of 17%. Shares of Micron have surged 123% this year. Moore pointed out that Micron’s current valuation versus the one during its last cycle peak “suggests there’s still healthy upside left,” highlighting drivers such as growing earnings estimates and long-term AI potential. “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,” the analyst wrote. MU YTD mountain MU YTD chart Moore acknowledged that a combination of tailwinds could drive multiple quarters of upwards earnings revisions for Micron. He emphasized that buying remains strong for Micron’s DRAM and NAND storage components. Buyers have especially faced more supply-side concerns through 2026 as inventories have slowly thinned out, the analyst noted. This demand should help balance out any concerns on HBM, another memory interface involved in AI training, Moore said. “Coming into the Micron quarter there were concerns that higher HBM4 speed requirements from Nvidia would put Micron at a disadvantage,” he wrote. “We do think Micron will be a quarter or so behind Hynix on volume shipments, but if Micron can maintain their overall share and introduce TSMC build base die with HBM4E it should not matter.” Moore added that Micron’s technology remains robust, while fears that new leaders could emerge appear “unlikely.” ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
