Bank of America Securities has raised its price target for Micron Technology (NASDAQ:MU) to $950 from $500, while maintaining a Buy rating.

The revision follows an updated assessment of the artificial intelligence data center total addressable market.

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The financial institution now forecasts the global AI data center systems market will reach approximately $1.7 trillion by 2030.

This marks a significant increase from its earlier estimate of $1.4 trillion.

AI Data Center Expansion Drives Demand

The projected market expansion is expected to structurally benefit hardware manufacturers like Micron. The company supplies high-value memory components directly into AI server architectures.

Bank of America anticipates that 2026 will be a pivotal year for accelerating AI-related sales and tangible returns on investment.

The firm also projects heightened structural efficiency in 2027 as new compute infrastructures and advanced memory systems achieve wider deployment.

Micron's Business Segments

Micron Technology specializes in developing memory and storage infrastructure solutions worldwide.

The company operates through four core business segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU).

These segments manage the company's product portfolio effectively, covering a range of applications from data centers to mobile devices.

The AI boom is expected to particularly benefit the Compute and Networking segment, which serves server and data center customers.

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Bank of America's updated price target reflects confidence in Micron's ability to capitalize on the growing demand for memory in AI workloads.

The stock has been a focus for investors seeking exposure to the AI hardware supply chain.

The new target of $950 implies substantial upside from previous levels, signaling strong expectations for Micron's revenue growth and margin expansion.

The company's memory solutions are critical for AI training and inference, which require high-bandwidth and high-capacity memory.

As AI adoption accelerates across industries, data center operators are investing heavily in infrastructure.

This trend is driving demand for advanced memory products like HBM (High Bandwidth Memory) and DDR5, areas where Micron has a strong presence.

Bank of America's analysis suggests that the AI data center market could grow at a compound annual rate that outpaces previous estimates.

The $1.7 trillion forecast for 2030 represents a 21% increase from the prior estimate, reflecting faster-than-expected deployment of AI systems.

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