Micron Technology (MU) shares dropped in late July when a Chinese rival’s stock market debut instantly minted one of the country’s most valuable companies.
Investors read it as a warning sign for the world’s AI memory leaders
Bank of America read the same headlines and reached the opposite conclusion. On August 3, BofA analyst Vivek Arya reiterated his Buy rating on Micron and held his price objective at $1,550, implying steep upside from current levels, according to a BofA Research note. Shares climbed as much as 8.3% that day.
That anxiety is understandable on the surface. CXMT, formally ChangXin Memory Technologies, held just 8% of the global DRAM market as of the second quarter, compared with Micron’s 22%, according to Counterpoint Research data cited by CNBC. But the company is scaling capacity at a pace few Western chipmakers have managed.