On Monday (November 24), during the US stock trading session, storage concept stocks collectively strengthened, with SanDisk leading the gains. SanDisk shares closed up 13.33%, Western Digital... Micron Technology rose 8.43%. Seagate Technology They rose by 7.99% and 6.69% respectively.
Earlier today, top US investment bank Morgan Stanley The company raised its price targets for SanDisk and Micron, citing a "widespread shortage" in the memory market and its belief that the semiconductor industry is in a more favorable position. The stock sell-off "does not seem reasonable."
In its report, Morgan Stanley raised its price target for Micron from $325 to $338 per share and its price target for SanDisk from $263 to $273 per share, while reiterating its "Overweight" rating and listing Micron as its top pick.
Analyst Joseph Moore said the memory market is “continuously improving,” with the most severe shortage of DDR5 DRAM. “There is a sense of crisis in the market – that no matter how high the price, you can’t buy the product.”
Although the shortage of consumer-grade NAND does not appear to be as severe, Morgan Stanley stated that it has observed "intergenerational supply shortages across the entire industry."
The report also refuted concerns that the current cycle might be weakening. Morgan Stanley pointed out that Samsung and SK Hynix are increasing their investment activities, while Micron described its own capital plans as facing "upward pressure."
But Moore emphasized that these changes need to be viewed in a specific context: in cloud computing With demand accelerating, suppliers are facing a “completely sold-out market,” and current spending levels “seem unlikely to keep pace with demand in the coming quarters.”
Moore also refuted claims by some PC manufacturers that there was sufficient supply, stating that "the entire industry as a whole does not have enough inventory."
Morgan Stanley believes that Nvidia They may be able to pass on the rising memory costs, while other chipmakers will face greater pressure on profit margins.
The bank raised its earnings per share forecast for Micron for calendar year 2026 by 15% and for SanDisk by 20%. Morgan Stanley also believes that tightening supply and strong AI-driven demand mean that "there may be multiple upward revisions in the coming quarters."
(Article source: CLS)
