The Micron Technology (MU) Mystery: Why Morgan Stanley Cut Its Target Despite “Remarkably Positive” News

Morgan Stanley lowered the price target on Micron Technology (NASDAQ:MU) to $98 from $112 and kept an Equal Weight rating on the shares. Micron makes and sells memory and storage products. In an investor note, the analyst noted that checks in DRAM had turned remarkably positive in recent months and though the advisory agreed with the view that tariff pull forwards were a factor, they were not the only thing driving pricing strength.

The advisory raised estimates for Micron and was now 25% above consensus for the August quarter and 15% for November EPS, but took down FY26 estimates slightly on account of potential macro headwinds.

A close-up view of a computer motherboard with integrated semiconductor chips.

The company recently announced a market segment-based business unit reorganization into four: Cloud Memory Business, Core Data Center Business, Mobile and Client Business, and Automotive and Embedded Business. The reorganization aims to capitalize on the transformative growth driven by AI, from data centers to edge devices. Micron is set to begin transitioning to the new business structure immediately. The transition is expected to close early in FQ4.

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