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Micron (MU) will continue to benefit from the tight supply of memory chips, Morgan Stanley analyst Joseph Moore noted today.

He reiterated his "Overweight" rating on the stock and hiked his estimates for the semiconductor firm.

"While markets have calmed during the period of seasonal weakness, conditions remain robust, and we expect above cycle earnings to persist," Moore wrote.

Consequently, Micron's stock could recapture its 2014 high of $36 per share, he hypothesized. 

Helping, he noted, is  increasing demand this year for its memory chips including DRAM and NAND.

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In his bull case, Micron stock could make it to $42 per share. 

Moore increased his estimates for Micron's profit this year to $4.23 per share from $4.01 previously.

For 2018, he raised estimates to $20.7 billion in revenue and $4.03 per share from a prior $19.7 billion in revenue and $3.19 per share.

Shares of Micron were higher by over 3% during late morning trading on Tuesday. 

Stocks have rebounded following a sharp sell off last week. Jim Cramer believes the rebound is real and gives investors advice on how to play the market going forward.

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