Bank of America believes SanDisk’s long-term growth targets could help reset how investors value Micron Technology (NASDAQ: MU), reinforcing its bullish view on the memory-chip maker.
The bank reiterated a Buy rating on the company and maintained a $1,550 price target, implying roughly 61% upside from the $963 share price referenced in its report.
BofA argues that if Micron can sustain strong growth and margins through AI-driven high-bandwidth memory demand and disciplined industry supply, the company may increasingly be valued as more than a traditional cyclical memory business.
SanDisk Targets Provide a Valuation Reference
SanDisk recently projected at its investor day that long-term revenue could grow at an average annual rate of nearly 15%, while gross margins could exceed 80% by fiscal 2030.
Bank of America sees those targets as an important benchmark for the broader storage industry.
If Micron can deliver similarly durable growth and profitability, particularly through HBM exposure, the company’s earnings profile could become structurally stronger and less dependent on traditional memory cycles.
That could justify a higher valuation multiple than investors have historically assigned to the stock.
BofA Sees Micron FY30 EPS at $200 to $250
Bank of America estimates that Micron’s fiscal 2030 earnings per share could reach between $200 and $250.
The bank believes the company’s HBM business could deserve a premium valuation because of its direct exposure to AI infrastructure spending and stronger demand visibility.
As profitability across the memory sector improves, BofA said the company could eventually trade at a price-to-earnings multiple of 12 to 15 times rather than the lower multiples typically associated with highly cyclical memory companies.
That shift would represent a significant rerating if investors begin to view Micron’s earnings base as more durable.
HBM Demand Could Change the Micron Investment Case
High-bandwidth memory has become one of the most important components in AI accelerators and advanced data center systems.
BofA believes sustained HBM demand, combined with disciplined capacity expansion across the memory industry, could support stronger pricing and margins for Micron over the long term.
The key question is whether those conditions remain durable enough to alter the company’s historical earnings cycle.
If they do, Micron could benefit from both higher earnings and a higher valuation multiple, creating a potentially powerful combination for shareholders.
Share Buybacks Could Become Another Earnings Catalyst
Bank of America also sees potential upside from capital returns.
The bank expects Micron could expand its share repurchase program after restrictions tied to the CHIPS Act expire on December 9, 2026.
BofA estimates the company’s trailing 12-month free cash flow could eventually exceed $80 billion, potentially giving the company substantial flexibility to return capital to shareholders.
In theory, that level of cash generation could support repurchases equivalent to close to 10% of the company’s market capitalization annually, according to the bank’s analysis.
Large-scale buybacks could further accelerate EPS growth by reducing Micron’s outstanding share count.
Three Factors Could Determine Micron’s Re-Rating
Bank of America highlighted three major factors investors should monitor going forward.
The first is whether Micron can sustain elevated gross margins as HBM demand grows and memory supply remains disciplined.
The second is whether management maintains strict capital allocation and return-on-invested-capital discipline as industry profitability improves.
The third is the trajectory of HBM demand and pricing, which could determine how much of the company’s earnings base investors ultimately view as structural rather than cyclical.
BofA’s thesis is that continued execution across those areas could lead to a fundamental reassessment of Micron’s valuation and support its $1,550 price target.
