01:35 PM EDT, 03/21/2024 (MT Newswires) -- Micron Technology ( MU ) crushed forecasts with its fiscal Q2 results, posting an unexpected profit and above-consensus revenue, but Morgan Stanley said in a note the real surprise was the chipmaker's upbeat outlook for the ongoing quarter.

Morgan Stanley analysts said Thursday that while they believe Micron's financial performance may weaken during H2, the company's share price will likely continue to strengthen, especially over the near term.

Micron Technology ( MU ) benefitted from its pricing for memory and storage products in the most recent quarter, Morgan Stanley said, noting that strength was a big factor in its Q2 earnings.

The analysts also acknowledged being wrong on the stock price. "We recognize that we have been (very) wrong on the stock," they wrote, but also added a caveat they "see better value elsewhere" among chipmakers in the memory sector.

Morgan Stanley increased its price target for Micron to $98 from $78 with an underweight rating.

Micron shares were more than 16% higher in recent trading.

Price: 111.92, Change: +15.67, Percent Change: +16.28