BoA Bets Big on Micron's AI Memory Boom

Bank of America reiterates a Buy rating on Micron (MU) with a $1,550 price target, arguing that the latest wave of open-source AI models will boost demand for high-bandwidth memory (HBM) and accelerate enterprise AI deployments, even as models get more efficient. The bullish view comes after Micron’s fiscal Q3 results: revenue of $41.46 billion, adjusted EPS of $25.11, and record free cash flow of $18.3 billion, with expectations of continued strength. Micron is expanding long-term automotive and tech supply agreements and increasing HBM production, while BOA notes that the stock’s forward valuation remains below the semiconductor sector median and that CHIPS Act buyback restrictions could lift around December 2026, expanding shareholder-return flexibility.