Analyst Joseph Moore favors Micron over AMD as AI-driven demand lifts memory pricing and earnings power
AI Boom Reshapes Semiconductor Landscape
Since the rise of ChatGPT, AI infrastructure has become one of the fastest-growing tech segments, with chipmakers at the core of this evolution. With the AI chip market projected to grow from $44.9 billion in 2024 to $460.9 billion by 2034 (CAGR: 27.6%), the race is on among semiconductor giants to capture this explosive demand.
Morgan Stanley’s Joseph Moore, a top-ranked Wall Street analyst, recently compared two of the most prominent players in the space: Advanced Micro Devices (AMD) and Micron Technology (MU). While both are poised to benefit from the AI wave, Moore sees one stock as the clearer winner right now.
AMD: Strong Partnerships, But Still a ‘Show-Me’ Story
AMD (NASDAQ: AMD) has made headlines with AI product launches and a blockbuster deal with OpenAI, committing to deliver its upcoming MI450 GPUs for large-scale deployment in OpenAI’s infrastructure.
- Stock Performance (YTD): Up ~79%
- Street Rating: Moderate Buy
- Average Price Target: $244.66 → ~12% upside
- Morgan Stanley Rating: Equal-weight (Neutral)
- Moore’s Price Target: $246 → ~13% upside
While Moore acknowledges the strategic importance of AMD’s OpenAI partnership, he notes that AMD’s ecosystem still lags behind Nvidia’s, particularly in software, tooling, and developer support.
“OpenAI seems genuinely invested in AMD’s success, which is significant. But AMD must still prove it can deliver ROI that rivals Nvidia’s,” Moore stated.
Though optimistic about AMD’s long-term potential, Moore remains neutral in the near term, awaiting clearer signs of ecosystem adoption and commercial execution.
Micron: Riding the AI Memory Supercycle
Micron (NASDAQ: MU), known for its DRAM and NAND chips, has emerged as a top AI beneficiary through its development of HBM (High-Bandwidth Memory)—a critical component for training and running large AI models.
- Stock Performance (YTD): Up 122%
- Street Rating: Strong Buy
- Average Price Target: $207.96 → ~11% upside
- Morgan Stanley Rating: Overweight (Buy)
- Moore’s Price Target: $220 → ~18% upside
Micron is showing impressive earnings momentum:
- FQ4 Revenue: $11.32B (↑46% YoY, beat by $160M)
- FQ4 EPS: $3.03 (beat by $0.17)
- FQ1 Guidance: Revenue up to $12.8B; EPS as high as $3.90
Moore sees pricing power strengthening with DDR5 and HBM:
“We’re likely entering multiple quarters of double-digit price increases, driving higher earnings power,” he noted, especially as sentiment around HBM improves.
Verdict: Micron Is the Stronger AI Bet Today
| Metric | AMD | Micron |
|---|---|---|
| Morgan Stanley Rating | Equal-weight (Neutral) | Overweight (Buy) |
| 1-Year Upside (MS Target) | ~13% | ~18% |
| Street Consensus | Moderate Buy | Strong Buy |
| Key Driver | GPU deal with OpenAI | High-bandwidth memory (HBM) pricing power |
| YTD Performance | +79% | +122% |
While AMD’s partnership with OpenAI is a game-changer in theory, Moore believes that Micron is already seeing tangible AI-driven earnings acceleration, backed by supply-constrained HBM and robust pricing trends.
Morgan Stanley’s Joseph Moore prefers Micron (MU) over AMD as the better AI chip stock. Despite AMD’s high-profile OpenAI deal, Moore views Micron’s dominance in high-bandwidth memory and ongoing earnings momentum as offering greater near-term upside and execution clarity.
