Bank of America Names Micron Technology a Top Pick as Memory Chip Demand Surges
Bank of America named Micron Technology a "top pick" on Monday, highlighting the company's potential to exceed Wall Street's earnings expectations. The investment bank raised its price target to $1,550, suggesting that the memory chip industry may be transitioning into a more durable, less cyclical phase. This shift is supported by evidence from SanDisk, which projected durable growth and long-term customer agreements that lock in pricing and volumes. Micron Technology shares rose 4.1% to close above the $1,000 mark on Monday, marking a 254% year-to-date gain. The company's growth is being fueled by record data-center spending and strong AI demand. Analysts suggest that Micron's structural earnings power may be higher than current consensus estimates, which peak at $160 to $170 per share for fiscal 2030. Bank of America analyst Vivek Arya noted that Micron's earnings per share could reach $200 to $250 in that same period. The administration's pressure on Apple to avoid Chinese memory chips also serves as a potential tailwind for U.S. producers like Micron Technology.
Sources
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SanDisk sends strong signal to Micron investors, BofA says
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Bank of America raises Micron price target to $1,550
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