Morgan Stanley Labels This Memory Chip Maker a 'Top Pick' as Shortage Drives Up Prices

The analysts said a shortage of memory chips to meet growing demand, along with rising prices, could mean more gains for Micron. Micron Technology (MU) shares took off Friday following bullish comments from Morgan Stanley, which called the memory chip maker a "top pick." Shares were up over 5% near $250 in recent trading. The stock has roughly tripled in value so far this year, with Morgan Stanley suggesting it still has room to rise. Morgan Stanley lifted its price target for the stock to a new Street high of $325 from $220, saying it expects the memory chip maker could be set to benefit from a boom in AI-driven demand and rising prices. In a note to clients Thursday, the analysts wrote that a shortage in the market for memory chips like the ones made by Micron could "lead to new highs in earnings power." The analysts said they believe the stock "has yet to fully price in the upside that's coming." The bullish comments come just days after Mizuho analysts also gave an optimistic assessment of Micron's outlook, saying they see demand remaining strong into next year and 2027. Wall Street analysts are overwhelmingly bullish on Micron's stock, with nine of the 10 analysts with current ratings compiled by Visible Alpha calling it a "buy," though it has already climbed ahead of their mean target with its recent gains.

Morgan Stanley Labels This Memory Chip Maker a 'Top Pick' as Shortage Drives Up Prices

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