Micron Technology stock dropped 10% on Tuesday ahead of earnings as Bank of America raised its price target to $1,500 from $950, signaling sustained bullish momentum despite the near-term pullback in mu stock.

The 58% target increase reflects BofA’s updated outlook for the global semiconductor industry. The firm now expects the sector to generate a total addressable market of $2.7 trillion by 2030, up from its previous forecast of $2.3 trillion, driven primarily by stronger growth in memory and data center chips where Micron stands to benefit from accelerating AI-related spending.

BofA noted that the increase is driven by stronger growth expectations for memory and data center chips, two areas where Micron is positioned to…