Bank of America Reaffirms "Buy" Rating for Micron: Semiconductor Pullback is a Healthy Correction

Bank of America Securities has released its latest semiconductor industry report, stating that the recent pullback in semiconductor stocks is a normal market correction, not a signal of weakening AI demand. Historical experience shows that semiconductor stocks often undergo consolidation during the summer. After the market completes profit-taking and valuation adjustments, a new wave of rebounds usually arrives in the fall.

The report estimates that by 2027, global capital expenditure on cloud computing and AI infrastructure will approach $1.5 trillion, an increase of approximately 40% to 50% from current levels. Regarding memory chips, the firm believes that as demand for HBM, DDR5, and enterprise storage continues to expand, coupled with AI servers driving demand for DRAM and NAND Flash, the memory industry will remain a significant beneficiary of the AI investment wave, with clear room for valuation recovery. The firm reaffirmed its "Buy" rating for Micron and maintained a price target of $1,550, stating that the company remains the most attractive investment target in the current memory industry.