Bank of America doubles Micron stock price target after surge

14 May 2026, 15:47 · The Fresno Bee

On May 12, I wrote about Micron's relative strength index, or RSI, hitting 85. That was one of the most extreme overbought readings on the daily chart, before the stock pulled back over 7% during the session to breathe. The technical signal was real. So was the concern about chasing a stock up 700% in a year.

Then Bank of America walked in and nearly doubled its price target. BofA raised its Micron Technology (MU) target in a note shared with TheStreet while maintaining a Buy rating. That is not a routine adjustment. That is a fundamental reassessment of the addressable market in which Micron is competing.

That is a signal that one of Wall Street's largest research teams believes the memory supercycle has significantly more runway than even bulls were modeling, despite the stock rallying 181.69% year-to-date and 731.07% over the past year, according to Yahoo Finance.

BofA nearly doubled its Micron target; the TAM upgrade explains everything

BofA raised its Micron Technology (MU) target from $500 to $950. That was ideally not driven by a single earnings beat. It was driven by BofA raising its estimate of the 2030 AI data center systems total addressable market to approximately $1.7 trillion, up from $1.4 trillion previously, according to the note shared with TheStreet.

That TAM upgrade is the engine of the entire bull case. Here is why it matters so directly for Micron specifically - high-bandwidth memory ships with every AI accelerator system.

There is no workaround. Every Nvidia GPU, every custom AI chip, every inference accelerator deployed in a data center requires HBM. As the AI infrastructure pie grows larger, Micron's slice grows proportionally.

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BofA's framework, as laid out in the note, centers on two time horizons. In 2026, accelerating AI sales and improving returns on investment continue to drive infrastructure spending. In 2027, new architecture, compute, and memory systems ramp up, and improving tokenomics - the economics of generating AI output - become the key driver.

Better memory systems directly lower the cost per AI token. Lower cost per token drives broader AI adoption. Broader adoption drives more memory demand. The feedback loop is self-reinforcing.

The note also raised targets on other AI infrastructure names simultaneously, signaling this is a coordinated supercycle update across BofA's semiconductor coverage, not an isolated Micron call.

BofA raised its estimate of the 2030 AI data center systems total addressable market to approximately $1.7 trillion, up from $1.4 trillion previously.

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Micron's Q2 2026 results validated everything the bull case predicted

The BofA upgrade did not arrive without evidence. Micron's fiscal second-quarter 2026 results, reported March 18, were records across every major metric.

Revenue of $23.86 billion, up from $8.05 billion in the same period last year
GAAP net income of $13.79 billion, or $12.07 per diluted share
Non-GAAP net income of $14.02 billion, or $12.20 per diluted share
Operating cash flow of $11.90 billion

Source: Micron Technology, Inc. Second quarter 2026 Results

For fiscal Q3 2026, Micron guided for revenue of $33.5 billion and gross margins of approximately 81%, with non-GAAP EPS of $19.15.

My review of that sequential revenue trajectory from $8.05 billion a year ago to $33.5 billion guided next quarter represents one of the fastest revenue accelerations any large-cap semiconductor company has ever produced.

"Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2," said Chairman, President, and CEO Sanjay Mehrotra. "In the AI era, memory has become a strategic asset for our customers, and we expect significant records again in fiscal Q3."

The board approved a 30% increase in the quarterly dividend alongside those results. That's a signal of management confidence in the sustainability of the cash generation, not just a single strong quarter.

What BofA's $950 target means for investors who read the RSI warning

My May 12 article raised an honest question: when a stock with an 85 RSI finally pulls back, is it a warning or a buying opportunity?

BofA's answer, at least from a fundamental perspective, is that the pullback was the opportunity. The $950 target implies roughly 18% upside from May 13's close of $803.63. For a stock that has already returned 731% in a year as of writing, according to Yahoo Finance, it might sound modest.

But what BofA is really saying is that Micron's earnings power through 2027 and 2028 is large enough to justify a significantly higher multiple than the market was previously willing to assign.

The risk factors have not disappeared. Memory cycles turn. New capacity comes online. HBM pricing could compress as supply catches up to demand, which analysts do not expect before late 2027 at the earliest. And at 181% year-to-date, Micron is a very different risk-reward proposition than it was twelve months ago.

What BofA's upgrade does is reframe the question. The $950 target is not a momentum call. It is a structural call that the AI memory supercycle is reshaping Micron's long-term earnings power in ways the prior $500 target was not capturing. Whether that reframing proves correct will depend on whether the $1.7 trillion TAM materializes on the timeline BofA is modeling. Based on Micron's last two quarters, the evidence is running in their favor.

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This story was originally published May 14, 2026 at 8:47 AM.