Wall Street is doubling down on Micron Technology, even as concerns grow about how long the semiconductor rally can last.
Shares of the memory-chip maker have surged 10% in the past week alone, and analysts at Morgan Stanley believe the run isn’t over. The firm raised its price target on Micron to $450 from $350 and maintained an “overweight” rating, citing strengthening pricing power in the memory market as artificial intelligence infrastructure spending accelerates.
Micron has been one of the biggest beneficiaries of the AI buildout. Demand for high-bandwidth memory (HBM) — essential for powering AI accelerators — has soared as cloud providers and tech giants expand data center capacity. Supply, however, has struggled to keep pace, giving memory manufacturers greater leverage to raise prices.
During a recent appearance at the World Economic Forum in Davos, CEO Sanjay Mehrotra highlighted the sustained surge in AI-driven demand for advanced memory. Industry executives echo that sentiment. At Semicon Korea 2026, Song Jai-hyuk, chief technology officer of Samsung Electronics, said AI-related infrastructure investment is likely to remain strong through at least 2027 as the company ramps production of next-generation HBM4 chips.
Analysts say the balance of power in the semiconductor ecosystem has shifted. Memory and advanced packaging, once viewed as supporting components, are now central to how quickly AI systems can scale. Clark Tseng of semiconductor research firm Semi noted that these technologies have become critical bottlenecks in AI expansion.
The pricing impact is already visible across the supply chain. PC maker Lenovo recently reported that memory costs climbed 40% to 50% last quarter and could potentially double again in the current period — a signal of tightening supply conditions.
Micron’s stock reflects that dynamic. Shares are up roughly 44% year to date, far outpacing broader market gains. As of Feb. 12, the stock was trading around $410.
Analyst price targets remain broadly constructive. Morgan Stanley and UBS both see shares reaching $450, while Deutsche Bank has set a more aggressive $500 target. Wells Fargo’s outlook is more neutral at $410, and Citigroup is slightly more cautious at $385.
Morgan Stanley analyst Joseph Moore argues that the memory cycle is still tightening rather than peaking. Despite significant gains in DRAM pricing over the past year, he believes supply constraints will continue to support elevated prices. In his view, the key variable isn’t demand — which remains robust — but the limited capacity available to meet it.
For now, AI’s rapid expansion continues to tilt the market in Micron’s favor, reinforcing the view among bullish analysts that the memory rally still has room to run.
