Bank of America Bullish: Micron’s Price Target Soars to $400 Amid DRAM/NAND Supply Squeeze

Memory markets are flashing red-hot signals—and Wall Street is taking notice.

Supply Crunch Meets Soaring Demand

Forget gradual climbs. Prices for critical memory components are surging, driven by a perfect storm of constrained manufacturing output and insatiable demand from AI, data centers, and next-gen devices. The traditional cycles of glut and shortage have tipped decisively toward the latter.

The Analyst Calculus: From Conservative to Conviction

Bank of America isn't just tweaking numbers—it's making a bold statement. Raising a price target to $400 signals a fundamental re-rating based on hard economics: limited supply plus rising prices equals explosive margin potential. It's a bet on scarcity as a business model, at least for the foreseeable future.

Forget 'Chips'—Memory is the New Kingmaker

While headlines chase the latest CPU or GPU, the real power shift is happening in the memory aisles. DRAM and NAND aren't just components; they're the foundational plumbing for the entire digital economy. When that plumbing gets pinched, everyone feels the pressure—and the companies controlling the valves print money. A classic case of Wall Street discovering that what's scarce becomes valuable, a revelation that somehow always seems to surprise them every single cycle.

Intel and AMD see price upgrades too, thanks to server demand and pricing power

Meanwhile, KeyBanc upgraded Intel and AMD stocks to overweight, raising Intel’s price target to $60, implying about 36% upside from Monday’s close.

Intel’s stock surged by 129% over the past year. Analyst John Vinh said Intel is largely sold out of server CPUs for 2026 as data center demand stays high across the chip space.

Because of that demand, Intel is considering raising average selling prices by 10% to 15%. John also flagged progress in Intel’s foundry business. He said yields on Intel’s 18A process have improved to more than 60%.

“While not best in class, as TSMC was at 70% to 80% when it launched 2nm, with INTC’s aspirations of being the number two foundry supplier, 60% plus yield is significantly better than SF2 at Samsung Foundry, which we believe is less than 40%,” said John.

The analyst added that Intel has already landed Apple as a customer for 18A, covering low-end processors used in MacBooks and iPads. He added that Intel and Apple are in talks to use Intel’s 14A technology for low-end mobile processors in iPhones.

He also said Amazon, Alphabet, and Meta have shown interest in Intel’s advanced packaging technologies, adding more demand signals for the chip business.

KeyBanc also raised its price target on AMD to $270, implying about 30% upside. AMD’s stock is up 77% over the past year.

John said AMD is largely sold out of server CPUs for the year and may also raise prices. He expects AMD’s AI GPU revenue to reach $14 billion to $15 billion this year, driven by MI355 demand in the first half and a significant ramp in MI455 shipments in the second half, keeping pressure on supply across the chip market.

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