HBM Maintained by B of A Securities -- Price Target Lowered to $29.50 - GuruFocus

Bank of America Securities maintains HBM stock rating but lowers its price target to $29.50, reflecting the complex market environment and revised profit expectations for semiconductor companies. This... Read original →

Bank of America’s cut to HBM’s $29.50 price target signals a sobering recalibration in the AI memory frenzy. Technically, HBM4 delays and CoWoS packaging bottlenecks are disrupting GPU roadmaps, dampening demand for silicon interposers and TSV equipment. Geopolitically, tighter U.S. controls on advanced packaging exports—coupled with Taiwan, China’s grid instability—are forcing HBM makers to build costly redundant fabs in Korea, Japan, and the U.S., lifting capex by over 15%. With SK Hynix and Samsung pulling ahead in HBM4 yields, Micron may accelerate GAA transistor integration to win NVIDIA’s next-gen contracts. Over the next 18 months, only players clearing the 30% yield threshold will survive in high-end HBM; laggards face exit. The valuation correction isn’t over.