Micron Price Target Raised to $950 by BofA
Micron price target rose after Bank of America lifted it, citing AI-server demand and tight DRAM and HBM supply, boosting trader positioning.
KEY TAKEAWAYS
- Bank of America raised Micron price target to $950 and kept a Buy rating.
- Upgrade cited AI-server memory demand and tight DRAM and HBM supply supporting margins.
- Analysts flagged overbought indicators and wide target dispersion, raising near-term volatility risk.
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Bank of America raised its price target for Micron Technology (MU) to $950 on May 13, 2026, maintaining a "Buy" rating. The upgrade helped fuel a rally as analysts cited rising demand for AI-server memory, tight supply of DRAM and high-bandwidth memory (HBM), and shipments of a new high-capacity data-center solid-state drive (SSD).
BofA Upgrade Widens Valuation Range
The Bank of America upgrade widened the valuation gap among analysts. While the average price targets clustered in the mid-$400s, around $478 to $483, several brokers pushed forecasts sharply higher. Mizuho raised its target to $740, and two firms initiated or raised calls to $1,000, creating a broad range following the recent rally.
Market observers noted technical indicators suggested overbought conditions, posing near-term risks. Demand concentrated in AI workloads could shift, increasing the potential for volatile trading despite sustained buy-side confidence.
Supply Constraints and Product Advances Support Growth
Tight supply across DRAM, NAND flash, and HBM has supported recent price increases and margin expansion. HBM allocations reportedly sold out for 2025, with long-term agreements extending into 2026, underpinning a multiyear pricing cycle for high-performance memory.
Micron has started shipping a 245-terabyte 6600 ION data-center SSD, reinforcing its position in high-capacity AI and storage markets. Fiscal 2025 revenue reached $37.4 billion, up 48.9% from $25.1 billion the prior year. The company entered the cycle with modest leverage, holding a debt-to-equity ratio of 0.13, and strong liquidity, with a quick ratio of 2.32 and a current ratio of 2.9. The chief executive completed an insider sale of 40,000 shares.
Analysts flagged upcoming earnings as a near-term catalyst. The Bank of America upgrade reflects renewed buy-side confidence in AI-server memory demand while intensifying debate over the durability of price gains and margins as supply cycles evolve.
