Micron (MU) inventory simply obtained one other main nod of approval from Wall Road, and the timing is telling.
Shares of the favored reminiscence maker are up 10% over the previous week, and Morgan Stanley sees much more upside, elevating its worth goal to $450 from $350 whereas reiterating an chubby ranking.
The bullishness stems from the truth that reminiscence pricing energy continues to go from power to power.
Micron and different reminiscence makers have been on a killer run as AI infrastructure spending rises at an exponential tempo. Excessive-bandwidth reminiscence (HBM) has change into mission-critical for AI accelerators, and provide has struggled to maintain tempo.
Micron CEO Sanjay Mehrotra mentioned AI’s insatiable demand for reminiscence throughout a latest CNBC interview at Davos.
And AI’s relentless urge for food for reminiscence isn’t slowing down anytime quickly, per Looking for Alpha and in line with Samsung Electronics CTO Track Jai-hyuk.
Talking at Semicon Korea 2026, he stated that AI-linked infrastructure demand ought to stay robust by not less than 2027, with the tech titan ramping up mass manufacturing of its sixth-generation HBM4 chips.
“Memory and packaging are no longer supporting roles,” stated Clark Tseng of Semi, a semiconductor analysis and evaluation outfit. “They are now critical to how fast AI infrastructure can scale.”
Moreover, Lenovo stated reminiscence prices jumped 40% to 50% up to now quarter and will double within the present one.
That’s precisely the setup that’s pushing Micron inventory to document highs, up 44%12 months to this point, regardless of broader market sluggishness.
The continuing AI infrastructure buildout is increasing quickly, positioning Micron properly for the rest of the 12 months.
Morgan Stanley’s newest Micron name highlights shifting dynamics within the reminiscence market.
Photograph by SOPA Pictures on Getty Pictures
The place Wall Road sees Micron inventory heading subsequent
- Micron is buying and selling at $410.34 (as of Feb. 12, 2026).
Morgan Stanley: $450 (+9.7%)UBS: $450 (+9.7%)
Deutsche Financial institution: $500 (+21.9%)
Wells Fargo: $410 (-0.1%)
Citigroup: $385 (-6.2%)
Morgan Stanley sees pricing energy getting stronger, not weaker
Morgan Stanley’s Joseph Moore is making the case that, regardless of the eye-opening run in DRAM over the previous 12 months, the cycle is just tightening.
“As much as happened in the last 12 months in DRAM, we remain excited for what’s ahead,” he wrote. The important thing ingredient to think about at this level is provide, or relatively, the dearth of it.
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The numbers again up the bullishness:
- DDR5 spot pricing up 30% YTD
- Spot costs are 130% above January contract ranges (up 86% from December).
- Mainstream pricing might double once more whereas nonetheless sitting at greater than 10% beneath spot.
- ASPs might method the high-teens per GB.
That’s large pricing leverage.
Furthermore, Moore now expects Micron to earn as a lot as $52 per share in 2026, speahreaded by HBM demand tied to Nvidia. “HBM is certainly a key part of the story here,” he famous, however added that DDR5 pricing alone is now “a much more attractive market right now.”
Micron is smaller in HBM, however the hole is narrowing
AI accelerators have been gobbling up HBM, and companies that may effectively ship product at scale proceed to win over investor confidence.
At this level, although, the scoreboard within the reminiscence area is evident.
In DRAM, SK hynix leads the cost with 33.2% market share, adopted by Samsung at 32.6%, with Micron at 25.7%.
In HBM, which is the essential half for AI GPUs, the hole is wider.
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SK hynix at the moment dominates with a 53% market share, Samsung holds 35%, and Micron trails at 11%.
In NAND, Samsung leads at 32.3%, SK hynix follows at 19.3%.
So clearly, SK hynix is the stand-out firm that’s dominating the HBM scene and can probably seize the majority of Nvidia’s early Rubin quantity. Additionally, Samsung is shifting aggressively to ramp HBM4 shipments and shut the hole.
On the similar time, regardless of Micron being a a lot smaller participant in HBM, it’s ramping HBM4 and benefiting from the broader reminiscence crunch.
It’s vital to notice that Micron is already in high-volume manufacturing on HBM4, having offered out its 2026 provide.
Micron inventory crushes the S&P 500 throughout each main timeframe
- YTD: Micron +43.77% versus S&P 500 +1.40%
- 1-year: Micron +336.16% versus S&P 500 +14.38%
- 3-year: Micron +585.96% versus S&P 500 +69.70%
- 5-year: Micron +374.49% versus S&P 500 +77.24%
- 10-year: Micron +4,134.67% versus S&P 500 +279.50%
Supply: Looking for Alpha
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