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Micron’s Outlook Jumps on DRAM Price Spike as Morgan Stanley Sets $325 Top Pick

Surging AI data‑center demand has tightened memory supply, rapidly lifting spot DRAM prices and powering Micron’s recent revenue and profit gains.

Overview

  • Morgan Stanley on Nov. 13 named Micron its top pick with an Overweight rating and a Street‑high $325 target, projecting about $25 in CY26 EPS and calling for continued upward revisions.
  • DRAM spot prices have roughly tripled in a little over a month, with buyer checks pointing to a shortage reminiscent of 2018 and price moves comparable to volatile 1990s cycles.
  • Micron’s latest quarter showed a 46% year‑over‑year revenue increase and a 258% jump in EPS, driven by stronger data‑center demand and higher selling prices that lifted margins.
  • Consensus expectations reported by Yahoo Finance see EPS of about $16.79 in fiscal 2026 and $18.70 the following year, underscoring a wide spread versus Morgan Stanley’s more bullish forecast.
  • Management signals a solid 2026 and says it expects to finalize agreements for its remaining high‑bandwidth memory supply in the coming months as the stock reflects substantial gains over the past year.