Micron Technology Inc. (NASDAQ:MU) stayed in focus this week as investors weighed intensifying U.S.-China AI chip tensions, evolving memory demand dynamics, and increasingly bullish Wall Street forecasts tied to the global AI infrastructure buildout.
China Exposure Keeps Micron In Focus
Micron traded alongside the broader semiconductor sector as markets tracked developments surrounding NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang joining President Donald Trump’s China delegation, while uncertainty around U.S.-China AI chip policy continued to pressure sentiment.
China remains a meaningful market for Micron. The company generated approximately $3.4 billion, or about 12% of total revenue, from mainland China last year.
Micron is also still navigating the fallout from Beijing’s 2023 restrictions on the company’s products in critical infrastructure systems.
Reports last year indicated Micron exited China’s domestic data center market after demand failed to recover following the restrictions. Even so, the company continues supplying chips to Chinese customers operating overseas data centers, including Lenovo Group Ltd. (LNVGY), while maintaining exposure to China’s automotive and smartphone markets.
The broader backdrop remains tense after Washington imposed semiconductor export restrictions affecting companies including NVIDIA, Micron, and ASML Holding NV (NASDAQ:ASML), over national security concerns.
BofA Becomes More Bullish On Micron
Bank of America analyst Vivek Arya sharply raised his Micron price forecast to $950 from $500, marking one of the firm’s most aggressive upward revisions during the current AI investment cycle.
Arya also lifted BofA’s forecast for the AI data center market to $1.7 trillion by 2030, up from prior projections of $1.4 trillion in February and $1.2 trillion in December.
According to the analyst, memory supply has become structurally tighter due to rising capital intensity, advanced packaging bottlenecks, power constraints, and geopolitical pressures that are making rapid capacity expansion increasingly difficult for memory manufacturers.
Arya noted that Micron plans to spend more than $25 billion in fiscal 2026 capital expenditures — roughly double fiscal 2025 levels — while meaningful new supply from projects such as the Idaho fabrication plant and Singapore advanced packaging facility may not arrive until 2027 or later.
AI Demand Continues To Support Memory Outlook
BofA expects AI-driven memory demand to remain strong as hyperscalers continue ramping up spending on AI infrastructure.
Arya said memory capacity per AI accelerator could rise from 187 gigabytes today to 464 gigabytes by 2030, while the high-bandwidth memory market could expand to $168 billion by 2030 from roughly $35 billion in 2025.
The analyst also pointed to expanding cloud infrastructure investments across major technology companies, including Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL), and Oracle Corporation (NYSE:ORCL), as further evidence that AI demand is accelerating faster than previous enterprise software adoption cycles.
According to Arya, constrained memory supply combined with surging AI infrastructure demand could keep pricing power firmly in the hands of suppliers such as Micron through at least 2028.
Earnings Outlook And Analyst Expectations
The next major catalyst for Micron is expected to arrive with its estimated June 24, 2026 earnings report.
Wall Street currently expects:
- EPS: $18.97, up from $1.91 year over year
- Revenue: $33.56 billion, up from $9.30 billion year over year
- Valuation: 37.9x forward earnings, reflecting a premium relative to peers
The stock currently carries a consensus Buy rating with an average analyst price forecast of $561.88.
Recent analyst actions include:
- DA Davidson: Maintained Buy rating with a $1,000 price forecast on May 11
- TD Cowen: Raised price forecast to $660 on April 28
MU Price Action
MU Price Action: Micron Technology shares were down 0.89% at $796.50 during premarket trading on Thursday. The stock is trading near its 52-week high of $818.67, according to Benzinga Pro data.
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