Micron's Record Run Isn't Over Yet, According to These Wall Street Bulls

Justin Sullivan / Getty Images Shares of memory chip maker Micron Technology are up sharply this year.

Key Takeaways

Shares of memory chip maker Micron Technology climbed to a fresh high to start the week, extending their recent rally. Morgan Stanley analysts upgraded the stock on expectations of AI-driven growth, while partner Advanced Micro Devices announced a massive deal with OpenAI Monday.

Micron Technology's (MU) stock has had a strong run in 2025 so far, and some Wall Street bulls say it's set to move. higher, as AI-driven orders grow.

The memory chip maker's shares were up about 3% to around $193 in recent trading, extending their recent rally and putting them on track to top Friday's closing record. The stock has added more than half its value since the year began, making it one of the S&P 500's top performers for 2025.

Morgan Stanley analysts upgraded the stock to “overweight” from a neutral rating on Monday, and lifted their price target to $220 from $160, a bit above the $196 average target compiled by Visible Alpha, pointing to booming demand for its high-bandwidth memory to support AI.

"Conviction from our purchasing contacts is very high," the analysts said, adding "we see more room to run."

Why This Is Significant

Many of the S&P 500's top performers this year are companies that make data storage or memory products needed to support AI data centers, like Micron, and stand to benefit from the same tailwinds.

Micron, which counts leading AI chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD) among its partners, last month posted record quarterly sales, thanks in large part to growth from its data center business.

AMD announced a massive deal on Monday with OpenAI that sent its stock soaring nearly 30% in recent trading. The news also helped lift shares of partner stocks like Micron and Astera Labs (ALAB), which saw its stock jump 11%.

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