Nvidia ( NVDA ) has successfully positioned itself as the global face of artificial intelligence (AI). Still, a different large-cap AI stock beat it in 2025: Enter Micron (MU).

Unprecedented demand for NAND and DRAM memory chips, driven by AI, helped MU quadruple in the past eight months.

Still, Morgan Stanley analysts believe Micron’s stock will rise significantly from here next year.

Micron is one of only three companies that make high-bandwidth memory (HBM) that is widely used in AI applications, the other two being Samsung and SK Hynix.

However, it is much more aligned with President Donald Trump’s broader commitment to land-based manufacturing, as neither of the other two are based in the US.

And that, in itself, is kind of a bull case.

In early December, the company posted a better-than-expected quarterly release, reinforcing its position as “an essential enabler of artificial intelligence.”

In fact, Morgan Stanley analysts dubbed Q1 2020 Q1 growth “the best in the history of US Semis,” which strengthens the case for owning it heading into 2026.

Despite the explosive recent rally in Micron stock, options data remains biased to the upside for 2026.

According to Barchart, the contracts expiring on March 20 currently have the upper price set at nearly $342, indicating that MU stock could rise another 20% over the next three months. The put/call ratio of these contracts is 0.41, indicating bullish bias.

More importantly, the Boise-based company currently trades at a forward price-earnings (P/E) multiple of only about 9x, well below some of the other top AI names, including Nvidia at north of 40x.

Investors should also note that Morgan Stanley isn’t the only Wall Street firm recommending holding Micron stock heading into 2026.

According to Barchart, the consensus rating on MU stock is “Strong Buy” with price targets of up to $500, indicating a potential upside of about 70% from current levels.