Micron's Run Isn't Over: Bank Of America Sees 40% More Upside

Micron Technology Inc. (NASDAQ:MU) may have already been one of the market’s biggest winners of the artificial intelligence era, but Bank of America believes the rally is far from finished.

The bank’s semiconductor analyst Vivek Arya on Tuesday raised his 12-month price target on Micron from $950 to $1,500, implying roughly 40% upside from current levels and establishing one of the most bullish targets on Wall Street.

The timing was striking.

Micron Technology Inc. fell about 11% on Tuesday to roughly $1,075, sliding from Monday’s record close of $1,211.38 as a memory-stock selloff that began in South Korea spread through global markets. Samsung Electronics and SK Hynix each dropped more than 12% in Seoul, triggering a circuit breaker on the Kospi.

Why Bank Of America Is Getting More Bullish On The Memory Rally

The core of Arya’s thesis is simple: the AI industry is no longer constrained by demand.

Instead, it’s constrained by physical infrastructure — chips, memory and power.

“We reiterate our thesis of the AI industry moving to addressing structural and physical (chips, power) constraints,” Arya said in the report, noting that memory shortages and pricing remain the most important variables driving earnings upside across the semiconductor sector.

Bank of America raised its forecast for total semiconductor industry sales to $2.7 trillion by 2030, from $2.3 trillion previously, and now sees the high-bandwidth memory market reaching roughly $246 billion by 2030, up from about $35 billion in 2025.

The biggest beneficiary of that forecast revision is memory.

Memory Is Becoming The New AI Bottleneck

While Nvidia Corp. (NASDAQ:NVDA) GPUs have dominated investor attention, Bank of America indicates that high-bandwidth memory (HBM) is emerging as one of the most critical components in AI infrastructure.

Arya pointed to growing evidence that memory supply remains tight and that long-term supply agreements are increasing visibility into pricing and demand.

Micron’s capacity additions are limited through 2027 because most of its rising capital budget is going into building cleanroom space rather than equipment, with meaningful new output not expected until 2028.

Long-term agreements, including Micron’s newly announced multi-year partnership with Anthropic, give the company two to three years of pricing visibility. Bank of America sees no material oversupply of either DRAM or NAND through 2028.

Those agreements are reducing the traditional cyclicality that has historically defined the memory industry.

Bank of America now forecasts memory revenue to surge from about $220 billion in 2025 to nearly $1.65 trillion by 2030, representing almost 50% annualized growth over the period. DRAM alone is projected to exceed $1.1 trillion by the end of the decade.

Micron was not alone. Arya raised price objectives across the group, framing memory, semiconductor equipment, power chips and agentic computing as the drivers of the next trillion dollars of industry sales.

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