TLDR

Morgan Stanley raised Micron’s price target to $338 from $325 and maintained Overweight rating
Memory chip shortages are intensifying across DRAM, NAND flash, and HBM products
Dell reported AI server orders jumped 150% to $30 billion in fiscal 2026
Memory prices are rising as demand outpaces supply across the industry
Analyst expects multiple upward earnings revisions for Micron in coming quarters

Micron Technology stock climbed higher after Morgan Stanley analyst Joseph Moore raised his price target on the memory chipmaker. The upgrade comes as reports of tightening supply point to stronger earnings ahead.

Moore lifted his target to $338 from $325. He kept his Overweight rating on the stock.

Micron Technology, Inc., MU

The analyst also raised his price target on Sandisk to $273 from $263. Sandisk shares climbed 13% following the news.

Moore says the recent selloff in memory chip stocks doesn’t match reality. Supply reports show shortages are getting worse across all memory types.

“It is very clear that the industry collectively does not have enough memory,” Moore wrote in his note. He sees potential for several quarters of upward earnings revisions.

The supply crunch affects multiple memory products. DRAM chips power desktop computers and servers. Flash memory goes into smartphones and solid-state drives. High-bandwidth memory serves AI servers.

AI Infrastructure Driving Demand

Demand for memory chips is surging due to AI infrastructure buildouts. Moore doesn’t expect new chip-making capacity to meet demand for several quarters.

Dell’s recent earnings report backs up this view. The company reported AI server orders rose 150% in fiscal 2026 to $30 billion.

Dell CFO David Kennedy highlighted memory capacity constraints during the earnings call. He signaled that memory prices are climbing as demand increases.

Morgan Stanley predicts Dell’s AI server shipments will grow another 50% in fiscal 2027. That would push sales to $37 billion.

Dell Vice Chairman Jeffrey Clark described the situation as unprecedented. “We have not seen costs move at the rate that we’ve seen,” Clark said on the call.

He confirmed the issue spans both DRAM and NAND memory types. “Demand is way ahead of supply,” Clark added.

Memory Price Supercycle Expected

Morgan Stanley analyst Erik Woodring says Dell properly explained how unusual this memory supercycle is. The company acknowledged rising costs will affect every product category.

Dell isn’t alone in facing these constraints. Server sales are rising industry-wide due to AI training and inference needs.

The squeeze on memory prices could be substantial. Every server maker needs more memory products to build into their systems.

Micron has positioned itself as a key supplier across multiple memory markets. The company leads in DRAM and flash memory production. It has also become a major HBM supplier for AI servers.

Moore believes strong AI demand will keep memory supply tight. New chip-making capacity takes time to bring online.

The analyst expects this to support higher memory prices for multiple quarters. This should translate to better earnings for Micron and other memory chipmakers.

Sandisk benefits from similar dynamics in the flash memory market. Both companies should see multiple upward earnings revisions as the supply situation tightens.

The post Micron (MU) Stock: Memory Chip Shortages Drive Price Target Increases appeared first on CoinCentral.

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Filed under: News - @ November 28, 2025 11:24 am