300%–900% Memory Rally Fuels Analyst Shift Away From Micron
Morgan Stanley reinstated Nvidia as its top semiconductor pick, noting the stock’s flat performance despite a 38% rise in earnings expectations and trading at 18 times projected 2027 EPS. This shift follows a 300%–900% surge in memory stocks like Micron and SanDisk, potentially weighing on MU sentiment.
1. Analyst Reprioritization Impacts Memory Names
Joseph Moore reinstated Nvidia as Morgan Stanley’s top semiconductor pick, highlighting improving fundamentals and a 38% increase in earnings projections. He contrasted Nvidia’s flat share performance with the 300%–900% rally in memory stocks, noting Nvidia trades at around 18 times expected 2027 EPS.
2. Outlook for Micron
Micron, previously favored for AI-related memory leverage alongside SanDisk, may face near-term headwinds as analyst focus shifts back to GPUs. The outsized rally in memory shares triggered the reprioritization, suggesting MU could lag while investors emphasize GPU supply, AI processor lead times and competitive positioning.