BofA Just Nearly Doubled Micron Price Target to $950: Memory Supercycle Just Got Bigger

"Bank of America raised its target to $950 from $500, while maintaining a Buy rating. The catalyst: an updated calendar 2030 AI data center systems total addressable market outlook of roughly $1.7 trillion, up from $1.4 trillion previously. The investor takeaway is straightforward. If the AI infrastructure pie is bigger, so is Micron's slice, because high-bandwidth memory (HBM) ships with every AI accelerator system."

"Bank of America's thesis rests on a thematic TAM call, not a single-stock view. The firm raised targets on NVIDIA ( NASDAQ:NVDA) and others on the same day, signaling a coordinated supercycle update. Bank of America's framework: 2026 will continue to be a year of accelerating AI sales and ROIs, while 2027 could see improving tokenomics and efficiency as new architecture compute and memory systems ramp."

"In Q1 FY2026, the company posted record revenue of $13.64 billion, up 57% year over year, with non-GAAP EPS of $4.78. The Cloud Memory Business Unit alone generated $5.28 billion in revenue at a 55% operating margin. Guidance was equally striking. Micron's management guided fiscal Q2 2026 revenue to $18.7 billion and non-GAAP gross margin to 68%."

"Micron's management guided fiscal Q2 2026 revenue to $18.7 billion and non-GAAP gross margin to 68%, with CEO Sanjay Mehrotra asserting that "Micron's technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler." Micron Technology stock has rallied hard, up 169% year to date through May 12 and trading near $804.79. The forward P/E ratio sits at just 8x."

Bank of America increased its Micron Technology price target to $950 from $500 while keeping a Buy rating. The catalyst was an updated 2030 AI data center systems total addressable market outlook of about $1.7 trillion, up from $1.4 trillion. The investment logic links a larger AI infrastructure market to a bigger share for Micron because high-bandwidth memory ships with AI accelerator systems. The firm expects 2026 to bring accelerating AI sales and returns, while 2027 improves token economics and efficiency as new compute and memory architectures ramp. Micron’s recent performance supports the thesis, including record Q1 FY2026 revenue and strong guidance for Q2 FY2026.

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