--- title: "It is estimated that AI investment will reach USD 1.5 trillion next year! Bank of America: The semiconductor pullback is a healthy correction, recommending to buy Micron" type: "News" locale: "en" url: "https://longbridge.com/en/news/292010789.md" description: "Bank of America Securities released a report stating that the semiconductor pullback is a healthy correction, and AI demand has not weakened. It is expected that global capital expenditures on cloud and AI infrastructure will approach $1.5 trillion by 2027. Driven by demand for HBM, DDR5, and other products, the outlook for the memory industry is optimistic. Bank of America reiterated its \"Buy\" rating on Micron, with a target price of $1,550" datetime: "2026-07-08T01:24:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292010789.md) - [en](https://longbridge.com/en/news/292010789.md) - [zh-HK](https://longbridge.com/zh-HK/news/292010789.md) --- # It is estimated that AI investment will reach USD 1.5 trillion next year! Bank of America: The semiconductor pullback is a healthy correction, recommending to buy Micron On July 8th, according to overseas financial news, Bank of America Securities released a report on the semiconductor industry, indicating that the recent pullback in semiconductor stocks is a normal market correction and not a signal of weakening AI demand. Historical experience shows that semiconductor stocks often undergo consolidation in the summer, and after the market completes profit-taking and valuation adjustments, a new wave of rebound is often welcomed in the autumn. The report pointed out that the market should currently focus more on whether AI demand continues to translate into corporate profits, rather than short-term stock price fluctuations. With major cloud service providers continuing to expand AI investments and the global demand for data center construction increasing, the medium to long-term fundamentals of the semiconductor industry remain positive. The report estimates that by 2027, global capital expenditures on cloud computing and AI infrastructure will approach $1.5 trillion, an increase of about 40% to 50% from current levels. In terms of memory chips, the report believes that as demand for HBM, DDR5, and enterprise storage continues to grow, coupled with AI servers driving demand for DRAM and NAND Flash, the memory industry will remain an important beneficiary of the AI investment wave, with clear valuation recovery potential. The report reiterates a "Buy" rating on Micron Technology, maintaining a target price of $1550, and believes the company remains the most attractive investment target in the current memory industry ### Related Stocks - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [AIQ.US](https://longbridge.com/en/quote/AIQ.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [MUD.US](https://longbridge.com/en/quote/MUD.US.md) - [MUYY.US](https://longbridge.com/en/quote/MUYY.US.md) - [MUZ.US](https://longbridge.com/en/quote/MUZ.US.md) - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) ## Related News & Research - [MU, SNDK, WDC: Hedge Funds Spent the Last Four Weeks Dumping Chip Stocks](https://longbridge.com/en/news/291836121.md) - [AIQ vs. BOTZ: Which AI ETF Could Deliver Bigger Returns in 2026?](https://longbridge.com/en/news/291727392.md) - [SanDisk and Micron Risk Profit Squeeze from Chinese Memory Threat](https://longbridge.com/en/news/292106076.md) - [Performance Comparison: Micron Technology And Competitors In Semiconductors & Semiconductor Equipment Industry](https://longbridge.com/en/news/291784776.md) - ['More Pain Ahead,' Says Investor About Micron Stock](https://longbridge.com/en/news/291999233.md)