Bank of America has upgraded its price target on Micron stock to $500 from $400, indicating greater confidence in the memory giant's long-term outlook. The change in outlook is seen as a shift in how analysts view the memory cycle, with supply remaining constrained amid a surge of AI-driven demand. Despite a 5% drop in Micron's Q2 earnings, the bank believes demand is still outpacing supply. Despite this, Micron has been one of the best-performing stocks in recent months, with a 161% gain over the past six months and over 54% year to date. BofA also highlighted the potential value of the company due to its strong Q2 revenue and guidance. The bank's valuation is compressed, with Micron trading at just 83 times times times estimated earnings.