Bank of America Securities Says Semiconductor Pullback Is a Normal Correction, Not Weaker AI Demand

Bank of America Securities said a recent pullback in semiconductor stocks reflects a normal market correction rather than a sign of weakening AI demand. According to Odaily, the firm said historical patterns show semiconductor shares often consolidate during the summer, and after profit-taking and valuation adjustments, the sector has frequently seen a new rebound in the autumn. The report forecasts that by 2027, global capital spending on cloud computing and AI infrastructure will approach $1.5 trillion, representing growth of about 40% to 50% from current levels. On memory chips, the firm said demand for HBM, DDR5, and enterprise storage continues to expand, while AI servers are driving ongoing demand for DRAM and NAND flash. It said the memory industry remains a key beneficiary of AI-related investment, with room for valuation recovery. Bank of America Securities reiterated a “buy” rating on Micron and maintained a target price of $1,550.