Micron Price Tag Raised to $950 as BofA Boosts AI Chip Stocks
Bank of America raised its price target on Micron from $500 to $950 due to lower memory supply elasticity. The firm also raised price targets on several other AI chip stocks. The AI data center systems addressable market is projected to reach $1.7 trillion by 2030, with major hyperscalers investing in AI infrastructure.
Micron's stock price received a significant boost as Bank of America analyst Vivek Arya nearly doubled the company's price target from $500 to $950 .
The analyst cited several constraints, including capital, packaging, power, and geopolitical factors, which are reducing memory supply elasticity. This led to upgrades for multiple AI semiconductor stocks, including Micron, Marvell, AMD, Coherent, and Nvidia .
Market forecasts suggest a strong demand for AI infrastructure, with the potential market value projected at $1.7 trillion by 2030 . Major hyperscalers are expected to invest hundreds of billions in AI infrastructure spending, driving growth in the space.
Marvell stock, in particular, has seen significant price movements due to analyst upgrades, with recent price target hikes sending it to record highs.
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