Bank of America Turns More Bullish on Micron and the Memory Sector Outlook

Deep News01:00

Micron Technology (MU) shares climbed 2.5% on Monday after Bank of America released a bullish research report on the stock.

Analyst Vivek Arya held a series of meetings with Micron management, which confirmed that memory chip supply is expected to tighten in 2027-2028, prompting him to become "even more optimistic" about the memory industry. This view aligns with recent comments from Nvidia CEO Jensen Huang, who said last week at the GTC conference in Berlin that a memory chip oversupply is unlikely through 2029.

Micron shares had fallen about 3% the prior week amid concerns over oversupply and weak demand, with the memory sector broadly sold off. But Bank of America noted that memory is "the most critical architectural pillar" of artificial intelligence, as memory determines AI performance and operational efficiency. The bank maintained its buy rating on Micron Technology with a price target of $1,550 per share.

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