Micron Technology Inc (NASDAQ: MU) pushed meaningfully higher on Nov. 14th after Morgan Stanley’s senior analyst, Joseph Moore, dubbed it a top pick heading into the new year.
Moore raised his price objective on the memory chips manufacturer as well to $325 this morning, indicating potential upside of another 30% from current levels.
Following today’s gains, Micron stock is already trading at about quadruple its price in early April.
Why is Morgan Stanley bullish on Micron stock?
Morgan Stanley’s bullish call on MU shares is attributed primarily to tightening supply of DRAM chips and rising prices heading into 2026.
“We believe that will move Micron firmly into uncharted territory from an earnings standpoint,” he told clients in a research note today.
DRAM spot prices have tripled in just over a month – a sharp increase that Moore compares to the dramatic cycles of the 1990s.
Despite an explosive rally over the past seven months, Micron stock is going for a forward price-to-earnings (P/E) multiple of less than 16 only, which makes it infinitely more attractive as an AI play compared to NVDA at about 46.
A small 0.18% dividend yield on MU makes up for another good reason to own it at current levels.
How do MU shares compare to Nvidia, though?
In his research note, Joseph Moore agreed that Nvidia remains undisputed leader in AI hardware, but said Micron shares’ setup offers a different kind of opportunity.
The Morgan Stanley analyst continues to see MU as an underappreciated story (despite its massive run) since buyers who failed to secure early DRAM contracts are now paying premium of 50% or more.
This underscores the severity of the shortage, he noted – adding the pricing power could translate into explosive earnings growth.
Nvidia’s valuation already reflects high expectations, and so, any misstep could trigger volatility.
Micron – on the other hand – is benefitting from a structural supply-demand imbalance that’s only starting to play out.
That could make MU stock the stealth winner of the AI boom, Moore concluded.
How to play Micron Technology heading into 2026
Micron’s resurgence is a reminder that not all AI beneficiaries wear the same badge.
While Nvidia dominates the GPU narrative, MU is quietly powering the memory backbone of AI infrastructure – and doing so with accelerating profitability.
Moore’s call signals that the market hasn’t fully priced in the upside in Micron shares.
With DRAM pricing on the rise and earnings momentum building, Micron offers a compelling mix of growth and scarcity-driven pricing power.
For investors looking to diversify their AI exposure beyond the usual suspects, Micron may be the chip stock to watch as the next phase of the semiconductor cycle unfolds.
Other Wall Street firms seem to agree with Morgan Stanley’s bullish view on Micron Technology as well, given the consensus rating on the Nasdaq-listed semiconductor company also currently sits at “buy”.
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