BofA Just Nearly Doubled Micron Price Target to $950: Memory Supercycle Just Got Bigger

A major analyst just made a bold bull case for memory. Micron Technology (NASDAQ:MU | MU Price Prediction) stock picked up one of the most dramatic price target hikes a large-cap semiconductor has seen this cycle, as Bank of America raised its target to $950 from $500, while maintaining a Buy rating. The catalyst: an updated calendar 2030 AI data center systems total addressable market outlook of roughly $1.7 trillion, up from $1.4 trillion previously.

The investor takeaway is straightforward. If the AI infrastructure pie is bigger, so is Micron’s slice, because high-bandwidth memory (HBM) ships with every AI accelerator system.

The Analyst’s Case

Bank of America’s thesis rests on a thematic TAM call, not a single-stock view. The firm raised targets on NVIDIA (NASDAQ:NVDA) and others on the same day, signaling a coordinated supercycle update.

Bank of America’s framework: 2026 will continue to be a year of accelerating AI sales and ROIs, while 2027 could see improving tokenomics and efficiency as new architecture compute and memory systems ramp. As inference scales for Micron and peers, cost per AI token becomes the key economic driver, and better memory systems directly lower that cost.

Company Snapshot

Micron’s results validate the bull case. In Q1 FY2026, the company posted record revenue of $13.64 billion, up 57% year over year, with non-GAAP EPS of $4.78. The Cloud Memory Business Unit alone generated $5.28 billion in revenue at a 55% operating margin.

Guidance was equally striking. Micron’s management guided fiscal Q2 2026 revenue to $18.7 billion and non-GAAP gross margin to 68%, with CEO Sanjay Mehrotra asserting that “Micron’s technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler.”

Why the Move Matters Now

Micron Technology stock has rallied hard, up 169% year to date through May 12 and trading near $804.79. The forward P/E ratio sits at just 8x, which Reddit’s r/stocks community has openly debated, asking “How can the market accept such a low forward P/E for MU?”

Reddit sentiment remains bullish on Micron, with a composite score of 68 and 22% of snapshots reading Very Bullish. The Bank of America target implies the memory supercycle has further to run, even after this year’s surge.

What It Means for Your Portfolio

For prudent Micron investors, the analyst upgrade warrants a closer look at how memory fits into an AI-exposure sleeve. The bull case is concrete: sustained hyperscaler capex, HBM execution against Samsung and SK Hynix, and tight supply through 2027.

The bear case deserves equal weight. Memory has historically been the most cyclical semiconductor segment, and multiple compression is a real risk if AI capex moderates or the cycle peaks earlier than expected. Insider activity at Micron has tilted toward net selling across 63 recent transactions.

Position sizing matters here. A long-term thesis on Micron Technology stock can coexist with measured exposure, especially after a rally of this magnitude.