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BofA sees an "enhanced buying opportunity" in this memory stock
['Sam Boughedda', 'Tue August At Pm Gmt', 'Min Read']
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Investing.com -- Bank of America reiterated a Buy rating and $1,550 price target on a key memory stock in a note on Tuesday, telling investors the recent pullback is an "enhanced buying opportunity" rather than a reason for concern.
BofA analyst Vivek Arya acknowledged that memory prices and margins "will inevitably normalize at some point," particularly as new capacity arrives from mid-2027 through 2028.
BofA added that the current stock discounts that bear case at roughly 8 to 9 times earnings, assigning little value to Micron's HBM and AI businesses.
BofA argued China's CXMT is still "not a threat in AI," as it primarily serves commodity DRAM rather than high-bandwidth memory.
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