Bank of America Says the AI Memory Boom Isn't Over: Why It Sees Micron's Earnings Exploding 34% a Year - 24/7 Wall St.

Bank of America believes the AI-driven memory boom is far from over, potentially breaking decades of semiconductor market cycles. The firm forecasts Micron Technology's EPS could reach $236.16 by 2030... Read original →

The AI-driven demand for memory chips is fundamentally reshaping the semiconductor value chain, with HBM and enterprise SSDs leading the surge in DRAM and NAND demand. Unlike previous cycles, this boom is fueled by data center hunger for compute power, pushing the industry toward higher performance and lower power consumption. However, intensified competition from SK Hynix, Samsung, and Chinese suppliers ramping up HBM4E production threatens Micron’s margins. Geopolitical tensions are fragmenting supply chains, compelling firms to diversify sourcing strategies. In the next 12–24 months, if AI compute demand exceeds expectations, Micron may see a revaluation, but only if it sustains 80% gross margins. Failure to do so will likely trigger a market reassessment of its growth trajectory.