Analyst Vivek Arya argues Micron’s sell-off is premature, citing AI-driven demand shifts not seen in prior cycles.
Bank of America reiterated its $1,550 price target for Micron, implying 87% upside from the current $829.50, despite a 34% decline since June. Analyst Vivek Arya attributed the drop to investors pricing in a downturn that hasn’t materialized, arguing AI demand fundamentally alters the memory cycle outlook.
Micron’s stock peaked in June before falling sharply, with short-seller Michael Burry targeting $1,051.87 in July. Arya’s note counters Burry’s bearish stance, emphasizing that traditional cycle comparisons may no longer apply due to AI’s structural impact on memory demand.
The firm’s Buy rating and target remain unchanged, suggesting confidence in Micron’s long-term positioning despite near-term volatility.