Bank of America Doubles Down on Micron Stock After AI Bombshell
After the launch of China's Kimi K3 AI model, Bank of America reaffirmed its bullish stance on Micron Technology (MU), dismissing investor fears of another 'DeepSeek moment'. The analyst argues that more efficient AI will expand the market, boosting demand for Micron's memory chips.
Following the launch of China's 'Kimi K3' AI model, which sparked fears of a repeat of the DeepSeek selloff, Bank of America has doubled down on its bullish call for Micron Technology (MU).
Rating Change
Bank of America reiterated its 'Buy' rating on Micron with a $150 price target, unchanged from its previous stance.
Analyst Rationale
The analyst argues that fears that more efficient models like Kimi K3 could reduce demand for expensive hardware are overblown. Instead, greater AI efficiency is likely to drive broader adoption, increasing demand for high-performance memory from Micron.
Context
The reaffirmation comes after Micron shares came under selling pressure last week following the Kimi K3 launch, which drew comparisons to DeepSeek's model that triggered a sharp tech selloff in January. Other analysts, including JPMorgan, have also maintained positive ratings on Micron.
What to Make of It
While concerns about the impact of more efficient models on hardware demand are valid, Bank of America believes Micron is well-positioned to benefit from long-term AI growth, particularly with its high-bandwidth memory (HBM) products.
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