By Angela Palumbo

Micron Technology stock, far outpacing the Nasdaq Composite this year, could rise further if demand for its artificial intelligence-powered memory remains strong, an analyst says.

Micron makes memory and storage solutions, including high-bandwidth memory for AI. The demand for high-bandwidth memory has been growing as the need to power AI data centers by hyperscalers, such as Microsoft and Amazon.com, rises.

Shares of Micron have risen 45% this year as Wall Street bets that demand for its high bandwidth memory continues. Wedbush analyst Matt Bryson has confidence that the stock can go even higher. He raised his price target on the stock to $150 from $130 while maintaining an Outperform rating ahead of third-quarter earnings, which are scheduled for June 25. That new price target implies a 23% increase from the stock's last closing price of $121.82.

"Better fundamentals in our view are driven by a pickup in enterprise/server demand that started in the April timeframe and looks to hold through the rest of the year as demand for both AI and standard workloads appears to be better than might have been initially anticipated," Bryson wrote on Friday.

Morgan Stanley analyst Joseph Moore rates Micron as Equal Weight with a $98 price target. He wrote in a research note on Friday that he doesn't recommend buying the stock, given how much it has rallied this year already. However, he's "tactically bullish given the material acceleration we are seeing in AI spending as Micron grows its participation."

Tech giants are spending massive amounts of money to build out AI infrastructure. For 2025, Meta Platforms expects capex of $64 billion to $72 billion, while Alphabet expects capex of $75 billion. That large volume of capital going into AI investments is a good sign for companies making AI hardware, like Micron.

"Micron's AI exposure set to double between now and the end of FY25, a tailwind to revenue/margins/EPS," Moore wrote.

Shares of Micron were up 0.8% to $122.82 on Friday.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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June 20, 2025 13:28 ET (17:28 GMT)

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