Micron Technology shares jump over 10% after Bank of America names it top AI memory investment

Bank of America added Micron Technology (MU) to its "Best Investment Ideas" list, raising its price target to $1,550 from $1,500 and reiterating a Buy rating. The bank cited strong AI‑driven demand for high‑bandwidth memory (HBM) and a tight supply outlook through 2027 as catalysts for the stock’s upside. Following the endorsement, Micron’s shares rose between 10% and 13% in a single trading session.

Micron’s fiscal Q3 2026 report showed revenue of $41.46 billion, up 345% year‑over‑year, and non‑GAAP EPS of $25.11, beating analysts’ expectations by 23.8%. The company reported record cash flow from memory products, especially cloud‑AI workloads, and noted that HBM now represents roughly 35%–40% of cloud AI spending.

Analysts highlighted the firm’s ability to raise prices as AI workloads require more memory, and the potential for future share buybacks once existing repurchase restrictions lift in 2026. Long‑term investors have benefited dramatically, with early holders seeing multi‑million‑dollar gains as the stock surged on AI‑related growth.

The market’s reaction underscores the broader investor focus on semiconductor firms positioned to supply the AI infrastructure boom.