The firm increased its Micron (MU) target citing long-term supply deals worth $100 billion and strong AI-driven demand.
Morgan Stanley raised its price target for Micron Technology (MU) to $1,200 from $1,050, maintaining an “Overweight” rating. The revision reflects growing confidence in Micron’s long-term revenue growth driven by artificial intelligence demand and strategic customer agreements.
Micron secured 16 long-term supply deals, covering 20% of its DRAM volume and a third of its NAND flash output. Fourteen agreements represent at least $100 billion in revenue commitments through 2030, with pricing structured under fixed or ceiling-floor models. Analysts noted capital spending remains measured, avoiding excessive outlays.
The deals include partnerships with four large customers, three mid-sized firms, and nine smaller automotive-focused clients. Most contracts span five years, while automotive agreements extend three years, signaling sustained demand across sectors.