By Tae Kim

The recent decline in memory-chip stocks is an attractive buying opportunity, according to Morgan Stanley.

On Monday, analyst Joseph Moore raised his price target for Micron Technology stock to $338 from $325, lifting his call on Sandisk to $273 from $263. He reaffirmed his Overweight ratings on both companies.

Micron is a leader in the markets for dynamic random-access memory, or DRAM, which is used in desktop computers and servers, and for flash memory, found in smartphones and solid-state hard drives. It has also become a key supplier of high-bandwidth memory, or HBM, for artificial-intelligence servers. Sandisk is also a leader in the flash- memory market.

The "recent selloff does not seem warranted as reports of tightening memory supply points to very strong earnings ahead," he wrote. There are "intensifying shortages across the board."

In early trading Monday, Micron stock and Sandisk shares were up 7.7% and 13%, respectively.

The analyst said demand for memory chips is strong because of the building of infrastructure for artificial intelligence. He doesn't believe additional chip-making capacity will be able to meet demand for several quarters.

"It is very clear that the industry collectively does not have enough memory," he wrote. "We see the potential for multiple upward [earnings] revisions over the next few quarters."

Write to Tae Kim at tae.kim@barrons.com

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November 24, 2025 12:24 ET (17:24 GMT)

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