Micron (NASDAQ: MU) stock surged around 8% to trade at $937 on Tuesday, July 21, as renewed bullish commentary from Wall Street analysts revived investor confidence in the memory chip sector.
Most notably, Bank of America (BofA) added Micron to the firm’s “U.S. 1 List,” which features what the bank sees as the best investment ideas.
Analyst Vivek Arya also raised his Micron price target to $1,550, implying 83% upside in the next 12 months, a figure he finds justified as the chipmaker has beat earnings per share (EPS) estimates by 24% for the eighth straight quarter.
Arya also stated that he believes Chinese competitors pose no threat to the company. Rather, he believes the rise of open-weight AI models could in fact increase the need for memory chips and benefit Micron in the process.
MU shares rally as Wall Street revises Micron stock valuation
The rally was also driven largely by Morgan Stanley analyst Joseph Moore, who described the recent weakness in memory stocks as a buying opportunity. At the same time, he argued that memory shortages continue to worsen and forecast that memory prices could rise by roughly 25% in the third quarter.
UBS also highlighted the strength of the AI memory cycle, warning that rapidly rising prices could eventually pressure some end markets and shorten the current supercycle. The bank also projected that Micron could repurchase more than 40% of its outstanding shares by 2028 once current buyback restrictions expire in December 2026.
The move also came amid a broader improvement in stock market sentiment, with NASDAQ futures, for example, rising around 1.4% and S&P 500 futures gaining approximately 0.5% before the opening bell.
This combination of factors has helped shift investor sentiment around Micron. That is, after falling sharply from its 52-week high of $1,255, the stock is now increasingly being viewed as an opportunity to gain exposure to the ongoing AI infrastructure boom rather than a sign of its weakening fundamentals.
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