Nvidia (NVDA) and Micron Technology (MU), two major companies tied to the AI boom, received higher price targets from BofA Securities as the firm turned more positive on AI spending and memory demand. Notably, MU stock has surged more than 168% year-to-date, while NVDA stock is up about 18% over the same period.
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Trade NVDA with leverageThe firm’s top analyst Vivek Arya raised his price target on Nvidia stock to $320 from $300 while maintaining a Buy rating, implying about 45% upside from current levels. He also lifted Micron’s price target to $950 from $500 and kept a Buy rating on the stock, suggesting roughly 25% upside from current levels.
Nvidia Remains BofA’s ‘Top Chip Pick’
Arya said Nvidia continues to stand out because of its strong position across the AI market and its broad product lineup. The analyst raised his fiscal 2028 and 2029 sales and earnings estimates by about 7%. He believes Nvidia is well placed to benefit as companies continue expanding AI infrastructure and deploying more advanced AI systems.
BofA also pointed to several upcoming catalysts for Nvidia, including its fiscal first-quarter earnings report on May 20, the Computex trade show in June, and the expected launch of its Vera Rubin platform later this year. The analyst added that Nvidia could also increase shareholder returns in the second half of the year.
However, Arya warned that profit margins may gradually decline as high-bandwidth memory becomes a bigger part of production costs and competition from AMD (AMD) and custom AI chips increases.
Micron Gets a Big Price Target Increase
BofA also became more bullish on Micron as demand for AI memory continues to stay ahead of supply. Arya said limits around capital spending, packaging capacity, and power availability are making it harder for the industry to quickly increase memory supply. That should help keep pricing stable over the medium term.
The analyst believes this setup favors memory makers like Micron, especially as demand rises for high-bandwidth memory used in AI servers.
BofA’s new $950 price target reflects a stronger long-term outlook for Micron’s AI memory business as well as improving trends in its traditional DRAM and NAND segments.
Which Chip Stock Is the Better Buy Right Now?
Turning to Wall Street, Nvidia appears to have stronger analyst support between the two stocks. NVDA carries a Strong Buy consensus rating, and analysts’ average price target of $276.41 implies roughly 25% upside from current levels.
Micron also holds a Strong Buy consensus rating from analysts. However, MU’s average price target of $591.67 suggests about 23% downside after the stock’s massive rally in recent months.
