Bank of America has increased its price target for Micron Technology from $500 to $950 while maintaining a "Buy" rating on the stock. The bank believes that in the coming years, the growth rate of demand for memory chips related to AI servers and data centers will continue to exceed the growth rate of supply.

This supply-demand imbalance is becoming a central part of the bullish narrative.

Analysts indicate that memory manufacturers are facing tighter production conditions, as building new capacity takes years and requires massive investments in facilities, packaging, and power infrastructure. Simultaneously, AI systems are consuming more high-performance memory than ever before.

Amid this trend, Micron has emerged as one of the biggest beneficiaries, particularly in the field of high-bandwidth memory used in advanced AI chips.

The stock has already experienced significant gains over the past year, yet investors continue to pour into the sector as companies race to build more AI infrastructure.

The next focus for investors will be whether Micron can maintain its pricing power and sustain robust earnings growth as global AI spending accelerates.