Micron stock target lifted at Bank of America amid a robust pricing environment

 Bank of America raised its price target on Micron to $400 from $300 per share in a note this week, citing stronger DRAM pricing and a favourable supply backdrop. 

Analyst Vivek Arya maintained a Buy rating and said BofA is responding to “continued increase in DRAM spot price and still disciplined Samsung capex spend in CY26.”

According to BofA, the memory market is benefiting from a combination of rising demand and constrained near-term expansion. 

The bank noted that while SK Hynix and Micron “have planned for substantial capex hikes this year,” the industry’s physical footprint remains a bottleneck. “

"Industry clean room space remains limited, with material equipment installation and volume production still likely 2-3 years away,” Arya wrote.

BofA stated that these constraints support a prolonged upcycle for memory, particularly as high-bandwidth memory (HBM) and data-center demand continue to build. 

The bank’s new $400 price target is based on “3.0x CY27E P/B, or at the high-end of historical 0.8x-3.1x range given the ongoing memory upcycle,” which BofA believes is reinforced by “earnings expansion (upcycle + HBM/DC ramp).”