Bank of America (BofA) has projected that the high bandwidth memory (HBM) market will grow to $246 billion by 2030, fueled by increased investment in artificial intelligence (AI). This represents a sevenfold increase from the current market size of approximately $35 billion over the next five years.
On July 21, Yahoo Finance reported that BofA recently added Micron Technology, a U.S. memory semiconductor company, to its 'US 1 List' of top stock picks.
Vivek Arya, a BofA analyst, maintained a 'buy' rating on Micron with a target price of $155.
BofA anticipates that the demand for memory semiconductors, including HBM, will surge due to the proliferation of AI, accelerating growth in the overall semiconductor market.
In a report last month, BofA raised its global semiconductor revenue forecast for 2030 from $2.3 trillion to $2.7 trillion (approximately 4,000 trillion won).
BofA estimates that the AI data center systems market alone will reach $1.7 trillion by 2030. The demand for HBM, essential for expanding AI data center investments, is expected to rise rapidly, and long-term supply contracts will enhance the stability of memory companies' performance compared to the past.
Furthermore, BofA noted that memory semiconductors are shifting from being volatile products influenced by economic conditions to becoming a long-term growth industry driven by AI.
BofA identified Micron as a key beneficiary of these market changes. Micron has secured 16 long-term supply contracts targeting data centers, consumer products, and automotive sectors. Analysts suggest that the increasing demand for AI memory and limited supply capacity could lead to prolonged memory shortages.
* This article has been translated by AI.
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