Bank of America Raises Micron’s Price Target to $400 Amid Memory Market Tightness
Micron Technology's stock received a significant vote of confidence as Bank of America lifted its price target to $400, citing favorable dynamics in the memory chip market. The 33% target increase reflects tightening supply conditions and rising prices for DRAM and NAND flash memory.
Analyst Vivek Arya maintains a buy rating, projecting 16% upside potential from current levels. Micron shares have already surged 264% over the past year, fueled by constrained industry capacity and robust demand. Recent spot and contract pricing trends show particular strength, with the momentum expected to persist through Q1 2026 before moderating.
The supply-demand balance remains tight due to disciplined capital expenditure across the industry. While competitors plan capacity expansions, physical constraints in clean room availability mean meaningful production increases remain 2-3 years out. The new valuation multiples reflect the peak of the current memory cycle, trading at 3x projected 2027 book value.
