Memory chip maker Micron Technology Inc. (MU) has received an upgrade from Morgan Stanley, citing strong momentum in memory pricing and ongoing demand from AI-driven infrastructure. 

The firm raised its rating on Micron to 'Overweight' from 'Equal Weight' and lifted its price target to $220 from $160, according to TheFly.

Morgan Stanley said the company is well-positioned to benefit from sustained price increases across its DRAM and NAND segments, which should boost earnings over multiple quarters. 

These factors could ease lingering doubts surrounding Micron's specialty high-bandwidth memory (HBM) offerings for AI workloads, noted the firm. Micron stock traded over 4% higher in Monday's premarket. 

According to a CNBC report, analyst Joseph Moore highlighted that memory buyers are growing increasingly concerned about supply tightness, especially through 2026. His team's checks suggest inventory levels are shrinking, which has triggered anxiety in the market, particularly in server and storage applications. This environment is expected to fuel ongoing pricing gains and set the stage for upward revisions to earnings projections.

Micron stock has more than doubled in value so far this year, yet Moore argues there's further room to run, the report noted. He believes the company's current valuation remains reasonable when compared to past peaks in the memory cycle.

“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 said. 

For the first quarter of 2026, the company expects revenue of $12.50 billion, plus or minus $300 million, compared to the analysts' consensus of $12.52 billion, according to Fiscal AI data. 

Micron Technology's stock has gained over 123% so far in 2025. 

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