Micron Technology stock looks to have attracted bargain hunters after the memory-chip company's drop from recent highs. BofA Global Research analysts are on board, seeing a buying opportunity.
The shares rose 0.9% to $957.70 in after-hours trading Wednesday, adding to a 1.1% gain during the preceding session.
The stock has fallen from levels above $1,200 in late June as investors became nervous about the sustainability of the artificial-intelligence spending that fueled demand for memory chips. But buyers now look to be stepping in -- Micron's South Korean peer SK Hynix rose more than 5% in local trading Wednesday.
BofA Global Research analyst Vivek Arya reiterated a Buy rating on Micron shares in a research note this week. He argued that Big Tech companies are set to spend around $1.5 trillion on global cloud and AI infrastructure in 2027 -- up between 40% and 50% from this year. Memory components are set to represent around 35%-40% of that spending.
"We believe the market is underestimating the transition toward longer-duration agreements and more predictable pricing. As memory evolves from a cyclical commodity to a strategic AI enabler, multiples should expand," Arya wrote.
Arya's $1,550 target price on Micron is based on a sum-of-the-parts valuation, assigning its traditional cyclical memory business a price-to-book ratio of around three times its expected book value in 2028, but putting its high-bandwidth memory business on a price-to-earnings multiple of 31 times forecast earnings for 2028.
Write to Adam Clark at adam.clark@barrons.com
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July 09, 2026 04:00 ET (08:00 GMT)
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