11:08 AM EDT, 10/06/2025 (MT Newswires) -- Micron Technology ( MU ) is expected to benefit from stronger-than-expected growth in pricing for its core memory chips, which are used in everything from smartphones to data centers, driven by improving market conditions and rising demand tied to artificial intelligence, Morgan Stanley said Monday in a report.

Prices for Micron's memory products are projected to climb by double digits over the next several quarters, boosting the company's earnings potential and supporting further gains in the stock over the next six to 12 months, Morgan Stanley said.

Earnings may surpass $5 per share in the medium term, driven by a combination of structural tailwinds and margin expansion, Morgan Stanley said. Gross margins may reach 56.5%, supported by constrained industry supply, ongoing inventory replenishment across key markets, and growing demand for memory chips tied to AI infrastructure, the report said.

Morgan Stanley upgraded Micron stock to overweight from equal weight and raised its price target to $220 from $160.

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