Micron Technology (MU) is likely to see a smaller magnitude of upward revisions than in prior quarters when it reports its Q4 results Sept. 30, Morgan Stanley said in a note Monday.

The report said near-term conditions are still "very" good, with strong demand and rising pricing in evidence.

The note also pointed to the debate shifting from "how good can it get" to "how long can it stay good" which can take longer to play out.

"We expect conditions to remain strong, and do see upward revisions on the print, but think the magnitude is lower than prior quarters," the report said.

The report said tight supply-demand conditions are likely to persist for multiple years, adding that the cycle is likely to end if AI spending slows rather than from incremental memory supply.

Morgan Stanley maintained its overweight rating and a $1,200 price target.

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