10:42 AM EDT, 09/24/2025 (MT Newswires) -- Micron Technology ( MU ) is benefitting from surging artificial intelligence demand and the memory industry's supply discipline that drove up pricing in traditional and new markets, BofA Securities said in a note Tuesday.

There is a resurgence in traditional server CPU sales due to agentic AI, as well as in high-capacity solid-state drives used in AI inference clusters, according to the note.

The company's high-memory bandwidth HBM3e market share is expected to reach an overall DRAM share of "low-20%" in calendar Q3, while HBM4 remains on track for a mid-2026 ramp, BofA said, adding that HBM4e's customized HBM with CMOS-based logic in the base die could also potentially drive higher pricing.

Management expects robust DRAM pricing to continue into fiscal 2026 due to tight supply, analysts wrote.

Although Micron has secured pricing agreements for most of its HBM supplies into 2026, Samsung's entry could put meaningful share and pricing pressure in the medium and longer term. Meanwhile, rising capital expenditure could also pressure DRAM gross margins, according to BofA.

BofA increased its price target to $180 per share from $140, while reiterating its neutral rating on the stock.

Price: 163.19, Change: -3.22, Percent Change: -1.93