Bank of America has lifted its price target on Micron (NASDAQ:MU) to $400 per share from $300, pointing to strengthening DRAM prices and a supportive supply-demand backdrop.
Analyst Vivek Arya reiterated a Buy rating, saying the upgrade reflects a “continued increase in DRAM spot price and still disciplined Samsung capex spend in CY26.”
The bank said conditions in the memory market remain favorable as demand accelerates while capacity additions stay constrained. Although SK Hynix and Micron “have planned for substantial capex hikes this year,” Bank of America noted that physical limitations across the industry are slowing expansion.
“Industry clean room space remains limited, with material equipment installation and volume production still likely 2-3 years away,” Arya wrote.
These bottlenecks, the bank argued, underpin a longer-lasting upcycle in memory, especially as high-bandwidth memory (HBM) adoption and data-center investment continue to rise.
Bank of America said its new $400 target reflects “3.0x CY27E P/B, or at the high-end of historical 0.8x-3.1x range given the ongoing memory upcycle,” a view it believes is further supported by “earnings expansion (upcycle + HBM/DC ramp).”