BofA Reaffirms Micron Buy With $1,550 Target After 28.7% July Plunge

1 articles · Updated · Benzinga · Aug 4

Bank of America kept its Buy rating on Micron and maintained a $1,550 price target, implying 86.9% upside from the Aug. 3 close of $829.50 after the stock’s worst month since 2015.
A 28.7% July drop followed profit-taking across semiconductors, forced selling tied to the Aschenbrenner fund blowup, and rising concern that Chinese memory competition could crush the cycle.
BofA argues the selloff overstates that risk: even with DRAM prices down 30% and NAND down 40% in a bear case, Micron could still earn about $100 a share, versus a prior-cycle peak near $12 in 2018.
That view rests on a changed memory market, with 50% to 70% of capacity expected to move under three- to five-year supply agreements and AI demand still supporting high-value HBM memory.
Chinese producer CXMT is growing into a low-teens share of global wafer capacity, but BofA sees its pressure concentrated in commodity DRAM rather than advanced HBM3E and HBM4 used in AI systems.