Micron (MU) in Focus as Analysts Highlight Multi-Year AI Data-Center Expansion

Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks Making Waves on Wall Street. On December 18, Morgan Stanley analyst Joseph Moore raised the price target on the stock to $325 from $180, citing a constructive long-term outlook as memory cycle enters its next phase, supported by AI-driven demand.

The firm acknowledged that the recent strength in the stock is a reflection of extreme movements in DRAM pricing over the past quarter. Supply constraints have been so severe that an estimated 30% of end demand appears to be going unmet.

These imbalances are anticipated to be normalized by mid-2026 as new production capacity comes online, the firm noted. While the stock’s rapid run-up may trigger volatility and pullbacks, it views these opportunities to buy rather than signals to exit.

Meanwhile, the longer-term thesis focuses on multi-year data center expansion cycle driven by AI workloads. Memory suppliers are planning for data center capacity ramp, reflecting confidence in sustained demand from cloud service providers.

“We’d be buyers into a pull-back and would stay long for an extended period of time. We believe memory/storage vendors are planning for a 2-3 year data center capacity ramp. As new capacity comes online, we expect supply dislocations to normalize while driving up operating profits. Given the huge run-up, we expect sharp drawdowns. We would be looking at selloffs as buying opportunities. We derive our bullishness from a differentiated narrative vs the Street. Rather than look to price dislocation alone as an indicator of end demand, we look to the rising supply over the next 2-3 years as indicative of memory suppliers’ confidence in the underlying demand from AI data centers as CSPs enter the next phase of AI build-out. Into an upcycle we expect memory suppliers to be judicious in their capex decisions. We are raising our earnings estimates and taking up our PT to $325 vs. our previous target of $180 set 3 months ago. Our PT is based on 13x EPS multiple over our CY27 estimate of $76bn/$25. We expect further expansion of revenue/eps into 2028.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

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