Bank of America Predicts Global AI Infrastructure Capex to Hit $1.5 Trillion by 2027, Reiterates Buy on Micron

According to Bank of America Securities, as reported by Guru Club, the bank's latest semiconductor industry report on July 8 stated that the recent semiconductor sector pullback represents normal market correction rather than weakening AI demand. The bank projects global cloud computing and AI infrastructure capital expenditures will approach $1.5 trillion by 2027, representing growth of 40 to 50 percent from current levels.

The report emphasizes memory chip demand will remain a key beneficiary of AI investment, citing continued growth in HBM, DDR5, and enterprise storage needs. Bank of America reiterated its "buy" rating on Micron Technology and maintained a $1,550 price target, calling the company the most attractive investment in the memory semiconductor industry.