Bank of America raised its Micron price target to $400 from $300, citing firmer DRAM pricing and limited supply growth. Analyst Vivek Arya kept a Buy rating, pointing to disciplined capital spending by Samsung and rising demand for memory chips. The memory market is tightening as clean room capacity stays constrained, delaying new production despite planned spending increases at SK Hynix and Micron.

Physical expansion bottlenecks mean meaningful output growth is still 2-3 years off, supporting prices. BofA’s valuation reflects a 3.0x price-to-book multiple for calendar year 2027, near the top of the historical range. The firm sees the upcycle extending, driven by high-bandwidth memory (HBM) adoption and data center demand.

Shares of Micron have rallied amid optimism around AI-driven chip demand. The new target suggests further upside if supply constraints hold and enterprise spending on AI infrastructure accelerates through 2026.