BAC · News · 20260804N

AI Infrastructure Demand

BANK OF AMERICA CORP /DE/ · 2026-08-04 · Importance 7 · Surprise 6

Bank of America views Micron Technology’s current fundamentals as strong, driven by cloud and AI infrastructure demand. The analysis cites sustained GPU and high-bandwidth memory (HBM) utilization and increased long-term supply agreements as supports for demand visibility. BofA expects Micron’s earnings could remain well above historical peaks even during a downturn, although memory prices may normalize in 2027–2028. The analyst also argues that multi-year supply agreements and sustained AI demand differentiate the current memory cycle from prior downturns, despite concerns about increased competition from China.

Key facts

• Bank of America analyst Vivek Arya suggests that even in a bear-case scenario Micron could achieve earnings per share of nearly $100, which is eight times higher than its 2018 peak of $12, and the analysis highlights ... sustained AI demand. source
• Bank of America said Micron's current fundamentals are strong, driven by cloud and AI infrastructure demand. source