Micron Stock Forecast: BofA Says AI May Have Broken Memory Cycle, Stock Could Rise to $1,144

TradingKey - Micron (MU) share price slightly pulled back after breaking through $1,000 and is currently hovering around $950.

Bank of America believes artificial intelligence may have broken the memory boom-bust cycle and forecasts that Micron Technology's earnings will experience long-term, massive growth. According to BofA's hypothetical model, Micron's revenue in fiscal year 2030 could reach $377.3 billion, well above the consensus market expectation of $280.5 billion. On the profit side, BofA expects its EPS to reach $236.16, representing a compound annual growth rate (CAGR) of up to 34.1%. The market's valuation of Micron remains relatively conservative, standing at only around 6 times expected FY2027 earnings.

CLSA stated that the memory industry has recently undergone an adjustment due to macroeconomic headwinds, with rising bond yields and geopolitical factors putting pressure on the recovery of memory stocks, but it maintains a positive outlook on the memory industry's prospects. The firm considers the recent pullback a buying opportunity, benefiting from sustained AI capital expenditure, as well as rising AI applications and monetization capabilities. The firm expects memory demand growth to outpace supply growth from 2027 to 2028.

Memory suppliers are committed to sustaining current profitability for a longer period, making them reluctant to significantly raise average selling prices (ASPs) even as the supply-demand balance is expected to remain tight over the coming quarters. Together with the rising adoption of long-term agreements (LTAs), this should support high levels of profitability and drive further upward valuation revisions. The firm is bullish on Samsung Electronics, SK Hynix, and Micron.

The firm further noted that despite market concerns over the NAND demand outlook, strong demand for enterprise SSDs in data centers now accounts for nearly half of NAND bit shipments. Coupled with the rising adoption of AI inference and AI agents driving NAND demand, and suppliers prioritizing the expansion of higher-margin DRAM/HBM to maintain NAND supply discipline, prices are expected to remain resilient. The firm projects global memory industry revenue to grow by 42% to $1.3 trillion in 2027 and by another 14% to $1.5 trillion in 2028, up from $927 billion in 2026.

Micron daily chart, source: TradingView

Although Micron's share price has experienced a two-trading-day pullback, it remains above the 0.382 Fibonacci retracement level ($935.35) and is trading within an ascending channel. The price has reclaimed the 5-day, 10-day, 20-day, 40-day, and 80-day moving averages, indicating a strong short-term daily structure.

The current share price is near the upper-middle portion of the ascending channel and is only about a 3% gain away from the 0.5 Fibonacci retracement level ($996.35), which serves as the primary resistance for further short-term strength.

If the share price can effectively break out and hold above $996.35, the rally is expected to push toward the 0.618 Fibonacci retracement level ($1,057) to the 0.786 Fibonacci retracement level ($1,144).

If the price encounters repeated resistance near this level, the market may maintain high-level consolidation and pull back to test short-term moving averages for support. The first support level on the downside is at the 0.382 Fibonacci retracement level ($935.35), which is close to the 10-day and 20-day moving average region and serves as the primary line of defense for the current rebound structure. If it falls below this price level and continues to lose moving average support near $915.66, the short-term rebound could downgrade to range-bound consolidation.