Micron Technology NASDAQ:MU rose 5% on Thursday after Bank of America reaffirmed its Buy rating, saying the recent pullback has created a buying opportunity as artificial intelligence infrastructure spending is expected to support long-term demand for memory chips.
Micron has retreated from its late-June highs as investors questioned whether rapid AI-driven spending can be sustained. Despite the decline, BofA said demand for memory products should remain supported as hyperscale companies continue expanding cloud and AI infrastructure.
The firm estimates global spending on cloud and AI infrastructure could reach about $1.5 trillion in 2027, up roughly 40% to 50% from this year. BofA expects memory components to account for about 35% to 40% of that investment and said the market may be underestimating the industry's shift toward longer-term supply agreements and more predictable pricing.
BofA maintained a $1,550 price target on Micron, valuing the company's traditional memory business separately from its high-bandwidth memory segment, which has become increasingly important for AI servers. Micron shares climbed about 1.1% in regular trading and added nearly 0.9% in after-hours trading.