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Morgan Stanley Names Micron Top Pick, Raises Target to $325 on Rapid DRAM Price Spike

The call points to a swift surge in DDR5 pricing linked to AI data‑center demand as a key driver of earnings power.

Overview

  • Morgan Stanley elevated Micron to its top pick with a Street‑high $325 target and projects more than $25 in calendar 2026 EPS as memory pricing accelerates.
  • Analyst Joseph Moore said DDR5 spot prices have roughly tripled in just over a month, describing earnings prospects as moving into “uncharted territory.”
  • A Reuters‑cited report says Samsung has lifted key memory prices by up to 60% since September and may raise contract prices a further 40%–50% in Q4, tightening DRAM and NAND supply and lifting U.S. peers’ shares.
  • Mizuho reaffirmed an Outperform rating and a $265 target after meetings with Micron executives, highlighting sustained HBM demand through 2026–2027.
  • Mizuho noted China‑related restrictions delaying an estimated 30%–35% of Samsung and SK Hynix output and flagged Micron’s planned Idaho and New York fabs targeting production between 2027 and 2029.