Why BofA Thinks Micron (MU) Stock Could Rally 65% From Here
TLDR
- Micron stock dropped 7% Friday, SK Hynix ADRs fell 8.8%, despite both being up for the week
- Micron is still up ~6% for the week after gaining in three of the last five sessions
- Bank of America reiterated a Buy rating with a $1,550 price target, seeing ~65% upside
- Micron posted record Q3 revenue of $41.46 billion, up 346% year-over-year
- Microsoft and Amazon earnings next week could act as catalysts for memory stocks
Micron (MU) stock dropped 7% on Friday, giving back some of Thursday’s 3.2% gain. Despite the Friday pullback, MU is still up around 6% for the week.
SK Hynix’s American depositary receipts fell 8.8% on the same day, after a 2.6% gain in the prior session.
The Friday dip came after a rough month for both memory names. Micron is down 12.8% over the past 30 days, while SK Hynix’s Seoul-listed stock has shed nearly a third of its value over the same period.
Concerns about chip pricing sustainability have weighed on the sector. Those worries haven’t fully gone away, even as both stocks bounced back this week.
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