Micron Technology (MU) is poised to benefit from robust demand and limited supplies for AI memory through 2028, BofA Securities said in a Tuesday report.
The report said memory capacity and bandwidth are increasingly becoming a bottleneck in AI inference, as opposed to historically compute most often being the bottleneck.
The raw demand for memory is increasing faster than various software/hardware abilities to compress and/or distill the amount of memory used during the inference process, it said.
The note also pointed to supply elasticity of memory is structurally increasingly lower due to limited capital, packaging, power, and geopolitics.
BofA analysts raised their sales and EPS estimates for Micron based on pricing trends and long-term contract visibility.
BofA reiterated its buy rating on the stock and boosted its price objective to $1,500 from $950.
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