Micron jumps 8% as BofA reiterates Buy, memory prices intact

Micron Technology shares rose over 8% on Tuesday after Bank of America reaffirmed its Buy rating, calling the recent semiconductor weakness a "strengthened buying opportunity" rather than a deterioration of long-term prospects. The rally also reflected improved Wall Street sentiment, with the S&P 500 climbing about 1.5% to a record high. The broker maintained its Buy recommendation and $1,550 price target, implying over 72% upside. Analyst Vivek Arya argued that AI-driven demand remains strong, with hyperscaler spending increasing and GPU rental rates near record highs, while memory supply constraints are not limiting AI rollouts. BofA projects Micron could generate around $150 EPS by fiscal 2028, with even a bear-case scenario near $100 per share. BofA dismissed concerns about Chinese competitor CXMT, noting it primarily supplies commodity DRAM rather than high-bandwidth memory used in AI servers. The bank expects long-term supply agreements to eventually cover 50-70% of industry capacity, potentially reducing price volatility compared to previous memory cycles.