Analysts Say Micron Has ‘More Room to Run.’ Should You Buy MU Stock Here?

Core Viewpoint - Semiconductor stocks are experiencing a bull run driven by the demand for artificial intelligence (AI) and data centers, with a notable recovery in the memory chip market after previous downturns [1] Industry Summary - The memory chip market, previously glutted due to excess capacity and falling prices, is now rebounding as investors recognize the importance of memory chips in AI servers and high-bandwidth memory (HBM) solutions for advanced graphics processors [1] Company Summary - Micron Technology (MU) has emerged as a significant beneficiary of the current market trends, with Morgan Stanley raising its price target to $220 and rating it "Overweight" due to several quarters of double-digit price gains and improving market fundamentals in the DRAM sector [2] - Micron's stock has more than doubled in price this year, reflecting strong demand for DRAM and HBM driven by AI data centers and tight supply conditions [5] - Despite the stock surge, Micron's valuation remains modest, trading at a price-to-earnings (P/E) ratio of about 12, significantly below the sector average of 33, indicating potential undervaluation relative to future growth prospects [6]