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Bank of America raised its price target for Micron Technology, which it called the top choice among U.S. memory chip makers.
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BofA pointed to rising demand for more artificial intelligence (AI)-powered PCs for optimism about Micron.
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The researchers also raised their outlook for Micron’s revenue and earnings per share.
Shares of Micron Technology (MU) traded at an intraday record on Monday after Bank of America raised its price target and said the chipmaker will benefit from booming demand for artificial intelligence (AI) products.
BofA raised its price outlook to $170 from $144 and called Micron the “top U.S. memory company.”
The researchers explained that they believe that “the emerging market for on-device AI capabilities, or Edge AI,” will “slowly but steadily complement the AI hardware in the core or data center.” They noted that the two main beneficiaries of Edge AI will be manufacturers of computing and memory chips.
BofA notes that demand for AI-powered PCs is increasing
The researchers wrote that due to the rising demand for AI-powered personal computers, and the need for more memory, plus the higher price tag, they raise Micron’s sales outlook for the 2025 and 2026 calendar years by 10% and 12%. %, respectively. They also increased their pro forma earnings per share (EPS) for the fiscal year 25/26E by 20%/21%.
Shares of Micron Technology, which rose 2.4% to $144.79 at 11:15 a.m. ET after hitting a record high of $146.29 earlier in the session, are up nearly 70% so far this year.
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