Analysts Say Micron Has ‘More Room to Run.’ Should You Buy MU Stock Here?

This year, semiconductor stocks have been on a bull run as investors flock to anything to do with artificial intelligence (AI) and its unending demand for more data centers. Four years ago, the memory chip market had become glutted due to suspected excess capacity and dropping prices. Now, things look like they're turning around. Investors are realizing that memory chips play a key role in AI servers and that state-of-the-art graphics processors require high-bandwidth memory (HBM) solutions.

One of the biggest beneficiaries was Micron Technology (MU), one of the most common suppliers of DRAM and NAND memory chips. Morgan Stanley has recently become bullish on the stock, increasing its price target to $220 and rating it “Overweight.” Analysts cite several quarters of double-digit price gains and deepening market fundamentals in the DRAM market.