Morgan Stanley doubles its price target on Micron (NASDAQ: in) on Wednesday, June 3, raising its price from $520 to $1,050 and maintaining an “Overweight” rating on the stock.
The bank said memory chip manufacturers such as Samsung, SK Hynix and Micron have become the main beneficiaries of the price hike, according to the bank’s report. analysis Shared with Reuterswhich controls nearly 90% of global production, has more than tripled its shares this year.
However, analyst Joseph Moore at the same time noted that there is no “quick fix to the memory shortage,” which he expects to lead to tight supply conditions over the next two or three years, or even longer.
Micron stock performance remains strong
As for Micron’s more noteworthy catalysts, Morgan Stanley pointed to new HBM contract renegotiations in late 2026 and new stock buybacks in fiscal 2027, with $50 billion in buybacks through 2028.
“We don’t think the streak of strong performance is over.” Moore wrote.
Furthermore, the bank raised its micron earnings per share (EPS) estimates for calendar years 2026 and 2027 by 4% and 48%, respectively, driven by higher pricing assumptions.
Moore said to return to the issue of memory deficiency Reuters Rising memory chip prices driven by rising demand for AI continues to increase the risk of “chip inflation.” This is because manufacturers of everything from smartphones to personal computers are now forced to choose between higher prices or shrinking profit margins, he said.
Likewise, Raymond James analyst Melissa Fairbanks raised her price target on Micron stock to $1,100, claiming that memory supplies remain locked in for years to come.
Is Micron stock a buy?
Micron shares are currently trading at $1,050, but based on the latest news TipRanks Datathe average price target for MU stock for the next 12 months sits at just over $852, which implies a decline of approximately 19% from current levels.
MU stock price target. source: TipRanks
However, with 27 “buy” recommendations and just three “hold” recommendations over the past three months, Wall Street has deemed the company a “strong buy.”
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