Morgan Stanley analysts have raised their price target for Micron Technology (MU) shares to a record $325 from the previous $220. Experts highlight the sharp surge in DDR5 memory prices, which have tripled over the past month, a level not seen since the 1990s. This creates a unique opportunity for the company to achieve record financial results.
According to forecasts, DRAM prices could rise another 15–20 percent in the first half of 2026, with some transactions reaching as much as 50 percent above benchmark prices. The main driver of this growth is the very strong demand from artificial intelligence data centers, which consume a large portion of global DRAM production. Manufacturers are focusing on producing faster HBM chips for AI, limiting the availability of DDR5 for consumer use.
Analysts note that unlike previous memory shortages, such as in 2018, Micron is entering the current cycle with record profits, allowing the company to operate in uncharted territory in terms of earnings potential. At the same time, production capacity expansion by manufacturers like Samsung and Hynix is accelerating, although demand still exceeds supply.
Despite a 180 percent increase in the stock price this year, experts believe the company still has significant upside due to sustained demand for DRAM and HBM in the AI segment.
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