Gotrade News - Bank of America raised Micron Technology's price target to $950, citing sustained AI memory demand through 2030. The bank also upgraded ThyssenKrupp Marine Systems to neutral on a record defense pipeline.
The repricings highlight how Wall Street is repositioning around AI infrastructure, defense backlogs, and China foundry risk. SMIC's first-quarter profit miss added a cautious note on Asian semiconductor exposure.
Key Takeaways
- BofA lifted Micron Technology (MU) to $950, implying roughly 18% upside from $803.
- BofA upgraded ThyssenKrupp Marine Systems to neutral on a €20.6 billion order pipeline through 2030.
- SMIC reported Q1 profit of $197.4 million, missing the $215.2 million consensus by 8.3%.
Memory Demand Drives Micron Repricing
According to Watcher.guru, BofA lifted Micron's price target to $950. The stock recently traded near $803, implying roughly 18% upside on the call.
BofA cited rising data-center demand, high-bandwidth memory, and high-density rack deployments. The bank expects memory demand to remain elevated through the end of the decade.
High-bandwidth memory has become a critical bottleneck for advanced AI accelerators sold by chip designers. Micron supplies HBM components used alongside processors from peers including NVIDIA (NVDA).
The call reflects broader bullishness from sell-side desks at firms like Bank of America (BAC). Memory pricing has firmed as hyperscalers expand capital spending on AI training clusters.
Defense Pipeline Lifts ThyssenKrupp Marine
As reported by Investing.com, BofA upgraded ThyssenKrupp Marine Systems from underperform to neutral. The order pipeline stood at €20.6 billion as of March 2026.
That backlog represents roughly eight years of revenue visibility for the German naval contractor. BofA adjusted the valuation multiple to 12 times EV/EBIT on the 2029-30 average.
Key opportunities include a €12 billion Canada submarine contract, with a decision expected mid-June. The €10 billion F-127 frigate program and a €3 to €4.5 billion India submarine contract are also in play.
The pipeline reflects rising European and allied defense spending amid geopolitical tensions. Naval programs typically deliver multi-decade revenue streams once awarded.
Per the same report, BofA framed the upgrade around visibility rather than near-term earnings momentum. The neutral rating signals balanced risk-reward despite the strong backlog.
Investors have rotated into European defense names this year on sustained order flow. ThyssenKrupp Marine sits at the center of that thesis as a pure-play naval builder.
SMIC Q1 Misses, Signals 2026 Optimism
According to Investing.com, SMIC posted Q1 profit of $197.4 million, up 5% year over year. The result missed analyst consensus of $215.2 million by roughly 8.3%.
Quarterly revenue reached $2.5 billion, an 11.5% increase that met consensus expectations. The profit shortfall reflected margin pressure rather than weakening top-line demand.
SMIC said it is more optimistic about 2026 compared with the December quarter. Management cited robust customer demand and existing orders supporting the improved outlook.
The China foundry sits at the intersection of domestic chip ambitions and US export controls. Its results offer a read on demand from mainland fabless designers.
