Micron Technology's ($MU) Shares Reached New Highs

Micron Technology's ( MU ) shares have reached a new high after Bank of America raised its price target for the stock. The report from Bank of America stated that Micron is poised to gain from the artificial intelligence (AI) boom, as the company's high-bandwidth memory (HBM) is crucial for AI technology. Bank of America has named Micron, Marvell Technology, and Advanced Micro Devices as "junior samurAI" companies that are likely to gain from the AI boom, following the firm's "top picks," Nvidia and Broadcom.

Bank of America has increased its price objective for Micron from $120 to $144 per share and reiterated a "buy" rating, as the company's potential to expand its HBM market share behind its Korean peers presents an opportunity for growth. The report also noted that the "junior samurAI" companies trade at a valuation premium to their respective leaders, which could result in greater stock volatility but also create profitable niches.

Micron's shares ( MU ) were up by almost 7% to $125.74 at 11 a.m. ET Monday, after earlier hitting an all-time high of $127.38. The stock has gained 53% year-to-date, with a Relative Strength Index (RSI) of 81.71 indicating an overbought situation or continuation of the current trend. Nvidia, a leader in the AI race, has already established itself as a major player in the field, with the companies within its AI ecosystem experiencing gains amid surging AI demand.

Overall, Bank of America predicts that the accelerator market will increase to $200bn over the next three years, which could create opportunities among the second-tier vendors. Despite the volatile nature of the market, Micron's position in the HBM market, combined with the growth prospects of the AI industry, make it an attractive investment opportunity.