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Micron Technology (NASDAQ: MU) is experiencing a surge in demand for DRAM chips amid a projected multi-year supercycle, with Morgan Stanley raising its price target for Micron stock to $325, approximately 50% higher than before. This target suggests a potential 40% upside from the stock’s mid-November highs as the demand for AI-capable memory units grows.
Additionally, Samsung recently increased memory chip prices by 60% due to a global shortage of products critical for AI, further driving demand for Micron’s offerings. Analysts predict that Micron’s earnings will enter “uncharted territory,” as current estimates do not fully account for the expected surge in revenue.
Micron’s stock, trading at a low valuation of approximately 14x earnings, may see a significant increase in price over the next few years. Despite a potential pullback to the $185 to $200 range, solid trends in analyst coverage and institutional support may help sustain current levels or drive new highs.
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