Bank of America doubles down on Micron stock price for 2026

Memory stocks person ever been among the astir volatile successful the semiconductor sector. They tally hard erstwhile the rhythm is right, past springiness backmost a batch of it erstwhile investors commencement pricing successful the adjacent downturn.

Micron has been done that rhythm much times than astir companies, and investors who person watched it earlier thin to commencement selling early, often earlier than the fundamentals warrant.

That's the statement Bank of America expert Vivek Arya is making close now. Micron has mislaid astir 34% from its June highest arsenic of Aug. 3. Arya published a enactment that time saying that the sell-off represents investors pricing successful a downturn that hasn't started yet, and that the net mathematics successful a atrocious script looks thing similar erstwhile cycles.

Why Bank of America is lasting by its $1,550 Micron terms target

The Buy standing stayed. The $1,550 people stayed. Arya acceptable that people connected June 24, adjacent the stock's peak, and hasn't touched it since. With Micron astatine $829.50, that's 87% implied upside sitting connected the array for anyone consenting to clasp done the noise.

Michael Burry shorted Micron astatine $1,051.87 connected July 1 and published a bearish enactment connected July 10 predicting the AI commercialized would "die a decease by a 1000 cuts," arsenic TheStreet reported. Arya's enactment is the counter-argument to that position.

The halfway statement successful the enactment is that investors are selling Micron arsenic if this representation rhythm is going to look similar each different representation cycle.

Arya thinks that's the incorrect framework. AI has permanently changed the request representation for high-bandwidth memory, and the bear-case net script for Micron contiguous is inactive acold amended than thing the institution delivered astatine the highest of anterior cycles.

More Micron:

• Michael Burry increases his stake against fashionable spot giant

• Bank of America doubles down connected Micron banal aft AI bombshell

• Micron banal jumps arsenic investors look beyond GPUs successful AI spot trade

Even if representation prices autumn 30% to 40%, successful enactment with erstwhile manufacture downturns, Bank of America estimates Micron could inactive make astir $100 per stock successful net successful calendar twelvemonth 2028. That compares with a highest of astir $12 per stock during the past large representation roar successful 2018.

The carnivore lawsuit contiguous is much than 8 times the prior-cycle peak. For Arya, that examination tells you however overmuch the AI epoch has changed Micron's net structure, adjacent successful a down scenario.

Run the numbers connected the basal case. DRAM down 10%, NAND down 18% successful 2028. Micron inactive earns astir $150 a share. Prices clasp flat, and you get $175. The banal close present is priced astatine 8 to 9 times the worst-case scenario.