Micron Stock Surges 12% After Bank of America Raises Price Target to $1,550 on AI Memory Demand

Micron Technology stock surged more than 12% on Tuesday after Bank of America added the chipmaker to its "Best Investment Ideas" list and raised its price target to $1,550 from $1,500, citing stronger demand for memory chips tied to artificial intelligence.

Bank of America analyst Vivek Arya pointed to Micron's fiscal Q3 2026 results and highlighted structural growth in the memory market. The bank estimates memory now represents approximately 35% to 40% of cloud AI spending, roughly two to three times higher than historical averages. Bank of America expects high-bandwidth memory supply to remain tight through at least 2027, potentially supporting pricing and margins for Micron.