Micron Technology (MU) and SanDisk (SNDK) are expected to benefit from sustained tight conditions in the global memory market, driven by ongoing supply constraints and strong AI infrastructure demand, Morgan Stanley said in a Wednesday note.
According to the note, DRAM remains the main bottleneck in AI computing demand, while NAND supply is also tight, with limited capacity expansion and long production lead times keeping supply growth below demand.
Morgan Stanley raised earnings estimates for Micron and SanDisk, citing stronger pricing and sustained hyperscaler demand, which are improving free cash flow and earnings visibility across the memory cycle.
Looking ahead, the analyst expects continued upward revisions to earnings as supply-demand imbalances persist, while noting that AI-driven workloads are extending the duration of the current upcycle in memory markets, the note said.
Morgan Stanley maintained its overweight rating for both stocks. It raised its price target to $1,050 from $520 for Micron, and to $1,750 from $1,100 for SanDisk.
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