BofA says SanDisk signals Micron valuation shift

Analyst

โดย TheStreet·

Summary · why it matters

Bank of America says SanDisk's long-term targets could reshape how investors value Micron shares. The bank reiterated its Buy rating and $1,550 price target on Micron, implying 61% upside from the $963 stock price used in the report. BofA values Micron's traditional cyclical memory segment at $1,040 per share using 3 times estimated CY28 book value, while valuing the AI-focused HBM business at 31 times CY28 earnings. SanDisk forecast nearly 15% annual sales growth with gross margins rising to over 80% through fiscal 2030, and BofA argues applying a similar framework to Micron would imply peak earnings of roughly $160 to $170 over the next couple of years. The bank also expects Micron to return 100% of free cash flow to stockholders after CHIPS Act restrictions expire on December 9, 2026, modeling over $80 billion of trailing 12-month free cash flow around that point, enough to buy back nearly 10% of Micron's market cap annually.