J.P. Morgan believes Micron shares can go higher even after its stunning rally.

The firm reiterated its overweight rating for the chipmaker's shares, citing strong demand for memory chips in the cloud computing market.

"Stay long Micron heading into earnings. We see further upside in Micron shares as the team is executing well in an overall constructive S/D [supply/demand] memory environment," analyst Harlan Sur said in a note to clients Monday. Memory "demand fundamentals likely to remain strong driven by robust cloud data center spending."

Sur reaffirmed his $82 price target for Micron shares, representing 41 percent upside to Friday's close.