By Tae Kim
Micron Technology stock should rise as investors realize that current gains in memory-chip pricing are sustainable, according to Morgan Stanley.
On Thursday, analyst Joseph Moore raised his price target for the shares to $325 from $220 and reiterated an Overweight rating. He also made the chip maker his "Top Pick."
"We are entering uncharted territory, as we have a 2018 style shortage forming but from a much higher EPS starting point," he wrote. "We expect serial upwards [earnings] revisions to continue."
In early trading Thursday, Micron stock down 1.4% to $241.46.
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.
The analyst said pricing for desktop PC memory chips has tripled over the past month. He doesn't believe investors are incorporating the higher prices into their assessments of Micron's earnings potential.
"We think the stock has yet to fully price in the upside that's coming," he wrote. "What's happening today is a case of demand growth that's dramatically higher than supply will be for some time."
Micron stock has gained 187% this year, compared with a 36% rise for the iShares Semiconductor exchange-traded fund.
Write to Tae Kim at tae.kim@barrons.com
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November 13, 2025 12:00 ET (17:00 GMT)
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