5 Best AI Stocks to Watch in July

2. Micron Technology Inc. (NASDAQ:MU)

Potential Upside: 70.51%

On July 6, Vivek Arya of Bank of America Securities reiterated a Buy rating on Micron Technology Inc. (NASDAQ:MU) and set a target price of $ 1,550. The analyst’s price target suggests a further 57% upside, which sits just below the median analyst upside on Wall Street of 70.5%.

The firm noted that the recent slowdown in AI infrastructure spending is only a temporary adjustment and does not alter the long-term growth outlook for AI demand. BofA expects global cloud and AI infrastructure capital expenditure to reach $1.5 trillion by 2027, increasing another 40-50% year over year. The growth will be supported by rising AI usage, wider adoption of AI agents, and limited availability of the infrastructure needed to support AI.

BofA analysts, led by Vivek Arya, remarked,

After an 88% surge in Q2, the SOX has corrected 11% in Q3, consistent with its historically weakest seasonal period. We view the current pullback as a healthy reset, not a structural change in AI demand. Near-term leadership may favor lower-beta names such as NVDA, TXN, ADI, CDNS and SNPS, but history suggests periods of consolidation are often followed by renewed momentum as investors regain confidence in the next leg of earnings and capex growth.

Moreover, major cloud companies are currently focused more on expanding capacity and growing their AI businesses rather than reducing costs related to existing infrastructure. The analysts added that as companies provide more clarity on their cloud spending plans for 2027, they expect memory chip companies, such as MU, to see renewed growth and stronger performance.

Micron Technology Inc. (NASDAQ:MU) provides memory and storage solutions sold into client, cloud server, enterprise, graphics, networking, smartphone, mobile-device, automotive, industrial, and consumer markets, among others.