AI stock round-up: Micron offers lower earnings setup, BofA sees positive AI visibility into 2028 - FXStreet

Recent AI-related stock market performance has drawn significant attention, with Micron Technology lowering its earnings guidance while Bank of America maintains an optimistic outlook for AI developme... Read original →

Micron’s lowered guidance reflects transitional pain in AI memory generational shifts, not waning demand. The HBM3E-to-HBM4 transition faces yield and qualification bottlenecks, compressing near-term margins. Yet this gap boosts bargaining power for upstream equipment makers (e.g., Applied Materials) and advanced packaging providers with CoWoS capacity. Geopolitically, tightening U.S. export controls on memory chips to China compel Micron to shift capex toward domestic and Japanese fabs, raising structural costs. Against Samsung and SK hynix’s HBM lead, Micron must accelerate co-development with NVIDIA and AMD. Over the next 18 months, AI server DRAM bit demand will grow over 40% annually—but only vendors delivering >2.4Gbps HBM bandwidth will capture premium orders. This inflection point may permanently sideline tier-2 memory players from the AI race.