Bank of America raised its price target on Micron Technology Inc. (MU) by 58% to $1,500 from $950 on Tuesday, maintaining a Buy rating, even as Micron shares fell more than 10% in morning trade ahead of third-quarter earnings due Wednesday. The upgrade followed BofA's revision of long-term semiconductor industry forecasts, which now project a global total addressable market of $2.7 trillion by 2030, up from a previous $2.3 trillion estimate. The price target increase comes amid a broader selloff in AI and chip stocks, with BofA citing accelerating demand across AI, cloud computing, and data center infrastructure as drivers for the expanded market outlook.
BofA Raises Micron Price Target to $1,500
BofA raised its price target on Micron for the second time in over a month, according to TheFly. The firm had raised the target last month to $950 from $500, and since then, Micron shares surged 36% past that target. The latest $1,500 price target represents a 58% increase from the previous $950 level, with the Buy rating unchanged.
Semiconductor Industry Forecast Increased to $2.7 Trillion by 2030
BofA's revised estimates reflect a larger addressable market for chipmakers as demand continues to accelerate across AI, cloud computing, and data center infrastructure. The firm now expects the global semiconductor industry to generate a total addressable market of $2.7 trillion by 2030, up from its previous forecast of $2.3 trillion. The increase is driven primarily by stronger growth expectations for memory and data center chips, two areas where Micron is positioned to benefit from rising AI-related spending. BofA also sees additional support coming from a recovery in automotive and industrial markets, which have remained relatively weak in recent years.
Micron Q3 Earnings Expected Wednesday After Bell
Micron's Q3 earnings are scheduled to be reported after the bell on Wednesday. According to Fiscal.ai data, Micron is expected to report earnings per share (EPS) of $20.28 on revenue of $35.3 billion. During the same period a year ago, Micron reported an EPS of $1.91 on revenue of $9.3 billion.
Micron and Anthropic Announce Strategic AI Partnership
Micron and Anthropic on Monday announced a strategic partnership focused on developing next-generation AI infrastructure, combining collaboration on memory and storage architecture with a long-term supply agreement. The companies said they will work together to optimize how memory and storage systems support AI training and inference workloads, with the goal of improving performance, energy efficiency, and overall AI economics. The agreement also includes Micron's adoption of Anthropic's Claude models across its operations and a strategic investment by Micron in Anthropic's Series H funding round. The companies said the partnership aligns Anthropic's growing compute needs with Micron's memory and storage technologies as demand for advanced AI systems continues to increase.
Micron Stock Performance Data
MU stock is up 283% year-to-date and 796% over the past 12 months. The S&P 500 ETF Trust (SPY) is up 23% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 35%. The iShares Semiconductor ETF (SOXX) is up 170% during this period, while the State Street Technology Select Sector SPDR ETF (XLK) is up 53%.
FAQ
What price target did BofA set for Micron stock?
Bank of America raised its price target on Micron Technology Inc. (MU) to $1,500 from $950, representing a 58% increase, while maintaining a Buy rating.
When is Micron's Q3 earnings report scheduled?
Micron's third-quarter earnings are scheduled to be reported after the bell on Wednesday, with expected earnings per share of $20.28 on revenue of $35.3 billion according to Fiscal.ai data.
What strategic partnership did Micron announce on Monday?
Micron and Anthropic announced a strategic partnership on Monday focused on developing next-generation AI infrastructure, including collaboration on memory and storage architecture, a long-term supply agreement, Micron's adoption of Anthropic's Claude models, and a strategic investment by Micron in Anthropic's Series H funding round.
