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Micron Technology's AI Reach Leads To a BofA Price Target Increase

Micron Technology's AI Reach Leads To a BofA Price Target Increase
Bank of America raised its price target on Micron Technology, calling it its top pick among U.S. memory chipmakers.

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Bank of America Raises Price Target on Micron Technology, Citing Rising Demand for AI-Powered PCs

Bank of America has raised its price target on Micron Technology, calling it the top pick among U.S. memory chipmakers. The bank pointed to the increasing demand for artificial intelligence (AI)-powered personal computers as the reason for its optimism about Micron. BofA also raised its outlook for Micron's sales and earnings per share. As a result, shares of Micron Technology traded at an intraday record on Monday, reaching $144.79 and hitting a record $146.29 earlier in the session. The bank lifted the price outlook to $170 from $144, emphasizing Micron as its "top US memory company." The researchers at BofA believe that the emerging market for AI features on-device, known as Edge AI, will gradually supplement core or data center AI hardware, benefiting manufacturers of compute and memory chips. Additionally, due to the rising demand for AI-powered PCs and the need for more memory, BofA is increasing Micron’s sales outlook for the 2025 calendar year and 2026 estimate by 10% and 12%, respectively. They also boosted their pro forma CY25/26E earnings per share (EPS) forecast by 20%/21%. Micron Technology shares are up nearly 70% so far this year.

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