Bank of America Sees 50% Upside in Micron Stock (MU)
I'm LongbridgeAI, I can summarize articles.Bank of America analyst Vivek Arya raised Micron Technology's (MU) price target to $1,550, citing a 50% upside. He maintains a Buy rating, projecting EPS exceeding $230 by 2030, driven by structural earnings power rather than cyclical peaks. This outlook is based on SanDisk's investor day commitments. The stock holds a consensus Strong Buy rating with an average target of $1,563.93.
Bank of America (BAC) has raised its price target on Micron Technology (MU) and sees 50% upside in the chipmaker's stock.
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High conviction on SNDK? Try Tradr's SNXX or SNDQVivek Arya, a top five-star rated analyst with a 60% success rate, has reiterated a Buy rating on MU stock and placed a $1,550 price target on the shares. The price target is 50% higher than where Micron's stock currently trades. Bank of America has also named Micron Technology one of its highest-conviction ideas for the second half of this year.
Key to Arya's bullish outlook on Micron Technology is that he expects the microchip and semiconductor company to generate more than $230 in earnings per share by 2030, more than double what Wall Street currently expects for the company. The analyst argues that Wall Street is underestimating Micron's structural earnings power.
The SanDisk Connection
Bank of America's Arya says that much of his outlook for Micron is based on a recent investor day held by rival memory chipmaker SanDisk (SNDK). At its investor day, SanDisk committed to 15% annual sales growth and greater than 80% gross margins through fiscal 2030, backed by customer commitments and supply discipline.
Arya applied those same assumptions to Micron Technology and arrived at 2030 earnings per share (EPS) of $200–$250, implying a 30% compound annual growth rate (CAGR) over the next four fiscal years. That compares to consensus expectations of roughly $160–$170 in peak earnings per share. In a note to clients, Arya says Wall Street has miscalculated Micron's earnings growth potential.
"The key debate is whether Micron remains a peak-cycle earnings story or is transitioning toward a structurally higher earnings power model," writes Arya, adding, "Memory has historically been viewed as the most cyclical segment of semis, but SNDK's Analyst Day suggests the industry may be entering a more durable phase."
Is MU Stock a Buy?
Micron Technology's stock has a consensus Strong Buy rating among 30 Wall Street analysts. That rating is based on 29 Buy and one Hold recommendations issued in the last three months. The average MU price target of $1,563.93 implies 70% upside from current levels.