10 AI Stocks Investors Are Watching

6. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 94

Micron Technology, Inc. (NASDAQ:MU) is one of the 10 AI Stocks Investors Are Watching. On November 13, Morgan Stanley named the stock as its top pick and lifted its price target to a Street-high $325. The firm maintained an “Overweight” rating, highlighting Micron’s strong EPS outlook and accelerating fundamentals.

According to analyst Joseph Moore, a shortage in dynamic random-access memory, or DRAM, may lead the stock into “uncharted territory” and help boost it to new highs in earning power.

“We are entering uncharted territory, as we have a 2018 style shortage forming but from a much higher EPS starting point; we expect serial upwards revisions to continue, as soon as next week. With $25 in CY26 earnings, moving the stock to Top Pick with street high $325 PT.”

Moore noted that the call is based largely given MU’s potential for material upward revisions in the short term.

“Since we upgraded MU to OW a little over a month ago [5 Synchronous Dynamic Random-Access Memory] spot pricing has tripled and in a historic sense, to find this the kind of move in DRAM pricing you’d likely to have to go back to the cycles of the 1990s,” “So while in terms of the severity of shortage (according to our buyer contacts) it feels most reminiscent of 2018, MU began that cycle with earnings at about breakeven vs today where earnings are already at record levels.”

Moore noted that this is going to move us firmly into uncharted territory from an earnings standpoint.

“We believe that’s going to move us firmly into uncharted territory from an earnings standpoint, and we think the stock has yet to fully price in the upside that’s coming. At a time when AI sentiment is pricing in positive moves — but still with some anxiety — we see room for further enthusiasm in the story in addition to the jump in earnings power.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.