Bank of America maintained its Buy rating on Micron Technology on July 21 with a $1,550 price target, implying approximately 66% upside. Analyst Vivek Arya argues that Chinese AI models like Moonshot’s Kimi K3 require about 1.4 TB of high-bandwidth memory per serving instance, actually driving demand for Micron’s memory chips rather than threatening it. Chinese chipmaker CXMT is focused on commodity DRAM and is not expected to produce competitive HBM products at scale until late 2026, leaving Micron with a significant technological lead in the high-margin AI memory segment. Micron’s revenue share from China fell from 14% in 2023 to approximately 7% in 2025, but Arya considers this manageable. Once certain CHIPS Act restrictions expire around December 2026, Micron could engage in share repurchases of $50-60 billion per year, against a backdrop of projected $1.5 trillion in cloud and AI capital expenditures through 2027.
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