Why DRAM Shortages Are Pushing Micron (MU) Back Into the Spotlight

Intensifying DRAM shortages and crisp DDR5 pricing momentum person pushed representation banal Micron backmost into Wall Street’s spotlight, reshaping the outlook for the semiconductor representation market. On February 11, Morgan Stanley expert Joseph Moore raised the terms people connected Micron Technology to $450.00 (from $350.00) portion maintaining an “Overweight” rating.

“As overmuch arsenic happened successful the past 12 months successful DRAM, we stay excited for what’s ahead,” expert Joseph Moore wrote successful a enactment to clients. “With different circular of important terms increases coming successful Q1 and inactive indications that proviso maturation successful 2026 volition bash small to alleviate the aggravated shortage we expect further pricing increases done this year.”

According to the firm, DDR5 spot pricing has already accrued 30% year-to-date and presently sits 130% supra January declaration prices. Mainstream DRAM pricing whitethorn perchance treble again portion inactive remaining much than 10% beneath existent spot prices. These proceed to inclination upward.

“Further, we person assurance that mainstream prices whitethorn attack that precocious teens ASP per GB level, arsenic we are seeing buyers who were not aboriginal to fastener successful pricing paying adjacent to that overmuch already.”

The continued pricing momentum reflects however representation makers whitethorn stay cardinal beneficiaries of the AI infrastructure cycle.

Micron Technology, Inc. (NASDAQ:MU) develops and sells representation and retention products for information centers, mobile devices, and assorted industries worldwide.

While we admit the imaginable of MU arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.