BofA Reaffirms Buy Rating on Micron with $1,550 Target, Says China AI and CXMT Pose No Threat

Summary

BofA analyst Vivek Arya reiterated a ‘Buy’ rating and $1,550 price target for Micron Technology (MU) Tip Ranks+ 2. The firm argues that Chinese open-source AI models like Kimi K3 actually increase High-Bandwidth Memory (HBM) demand due to larger parameter sizes Yahoo Asia+ 2. Furthermore, BofA dismisses competitive risks from China’s CXMT, noting it remains focused on the consumer market rather than high-end AI applications Yahoo Asia.

Impact Analysis

So basically, BofA is telling the market to stop worrying about the “China threat” and start counting the bits. The interesting part isn’t just the $1,550 target—which implies a massive ~60% upside Tip RanksMicron Tech -0.22%—it’s the pivot on Chinese AI models like Kimi K3. While some feared these might reduce hardware intensity, BofA argues they actually act as a demand multiplier for DRAM and HBM because larger parameters and wider deployment require more “desk space” in the server Yahoo Asia.

Market’s missing that Micron is still fundamentally undervalued at a 19.4x P/E compared to the semi-sector average of 57x Simplywall. With HBM supply fully booked through 2027 Stock Invest, the downside seems capped by physical scarcity. I’d read the dismissal of CXMT as a signal that the “commodity memory” fear is overblown; the real battle is in high-end HBM where China still lacks a foothold Yahoo Asia. Despite Burry’s cyclical concerns TradingKey, the structural shift of memory into an “AI core asset” makes this less of a cycle and more of a multi-year land grab QQ News.