MU Stock Is Down 10% - But BofA Just Raised Its Price Target By 58%

Key Points:

• Bank of America (BofA) raised its price target for Micron Technology to $1,500, up 58% from $950, maintaining a 'Buy' rating despite a recent 10% drop in Micron shares amid a broader AI and chip stock selloff.
• BofA updated its long-term semiconductor industry forecast, increasing the total addressable market to $2.7 trillion by 2030 from the previous $2.3 trillion, driven by accelerating demand in AI, cloud computing, and data center infrastructure.
• The firm highlighted stronger growth prospects for memory and data center chips, areas where Micron is well-positioned, along with anticipated recovery in automotive and industrial markets supporting its bullish outlook.
• Micron's Q3 earnings report is expected Wednesday after market close, with consensus estimates projecting earnings per share of $20.28 on $35.3 billion in revenue, a significant increase from the prior year.
• Micron announced a strategic partnership with AI company Anthropic to develop next-generation AI infrastructure, focusing on memory and storage architecture and establishing a long-term supply agreement.