Bank of America thinks the sell-off in AI infrastructure stocks has gone far enough to be worth buying again.
In a note published Wednesday, the bank’s research team screened its trading desk’s AI ecosystem baskets and pulled out 16 Buy-rated stocks that have fallen sharply from their highs while analysts were still raising earnings estimates on them.
How The Screen Was Built
BofA started with the constituents of its trading desk’s 15-plus AI ecosystem baskets, removed anything not rated Buy, then kept only stocks with positive three-month earnings revisions that were trading more than 20% below their 52-week high.
Forty-six names cleared that bar.
Analysts then narrowed the list to 16 based on what they saw as the best risk-reward for a medium-term holding period.
Micron Has The Widest Gap To Target
Measured against BofA’s price objectives, the largest implied upside belongs to Micron Technology Inc. (NASDAQ:MU): $1,550 against a stock that closed Thursday at $949.83, or roughly 63%.
Analyst Vivek Arya wrote that investors have been positioning ahead of an eventual memory downturn, but called the reset “an enhanced buying opportunity” on the view that the stock already discounts a severe cyclical outcome while assigning almost no value to the HBM and AI business.
Arya expects server DRAM pricing to rise 13-18% quarter-over-quarter in the third quarter, with supply staying tight because new capacity only starts arriving around mid-2027.
His long-term estimate is roughly $150 in per-share earnings for 2028.
The Rest Of The List
Behind Micron, the widest gaps to target sit with Oracle Corp. (NYSE:ORCL) at 54%, Flex Ltd. (NASDAQ:FLEX) at 45%, Celestica Inc. (NYSE:CLS) at 44%, Aktis Oncology Inc. (NASDAQ:AKTS) at 43% and Robinhood Markets Inc. (NASDAQ:HOOD) at 41%.
Meta Platforms Inc. (NASDAQ:META) and Cameco Corp. (NYSE:CCJ) both sit at 36%, followed by Vistra Corp. (NYSE:VST) at 34%, CoreWeave Inc. (NASDAQ:CRWV) at 32% and Vertiv Holdings Co (NYSE:VRT) at 31%.
The tighter end of the list holds Seagate Technology Holdings PLC (NASDAQ:STX) at 25%, Albemarle Corp. (NYSE:ALB) at 19%, Talen Energy Corp. (NASDAQ:TLN) at 18% and Lam Research Corp. (NASDAQ:LRCX) at 14%.
Atlassian Corp. (NASDAQ:TEAM) closes it out at 5%, the only name already trading near BofA’s objective.
BofA’s 16 AI Selloff Picks — Targets, Upside And What Has To Go Right
| Company | BofA Analyst | BofA 12-Month Target | Implied Upside | Growth Catalyst | Key Risk |
|---|---|---|---|---|---|
| Micron Technology | Vivek Arya | $1,550 | +63% | Memory is scarce into 2027; server DRAM prices seen up 13-18% this quarter | Memory prices turn down sooner; Chinese rivals gain ground |
| Oracle | Tal Liani | $240 | +54% | $638B of work already signed and waiting to be delivered | Data centers come online late; AI spending takes longer to pay |
| Flex | Ruplu Bhattacharya | $180 | +45% | Spinning off its data center power arm in early 2027 | Weak demand outside data centers; parts shortages |
| Celestica | Ruplu Bhattacharya | $500 | +44% | Will build racks and switches for AMD and OpenAI projects from 2027 | Hyperscalers cut orders; cheaper Asian rivals take share |
| Aktis Oncology | Alec W. Stranahan | $34 | +43% | Uses AI to design cancer drugs; first key trial data due early 2027 | Trial data disappoints or arrives late |
| Robinhood Markets | Craig Siegenthaler | $140 | +41% | Trading volumes recover if the bull market runs into 2027 | Rules on order-flow payments and crypto tighten |
| Meta Platforms | Justin Post | $810 | +36% | Sept. 23 event could show how it plans to sell its AI capacity | Ad spending softens; AI costs squeeze margins |
| Cameco | Lawson Winder | $133 | +36% | Owns half of Westinghouse, the US government’s chosen reactor design | Reactor orders arrive more slowly than hoped |
| Vistra | Rinny Singh | $196 | +34% | Owns power plants where data centers are being built | Rules change; wholesale power prices fall |
| CoreWeave | Tal Liani | $140 | +32% | $99.8B of signed orders; computing capacity nearly doubling this year | Heavy debt load; too few, too large customers |
| Vertiv | Andrew Obin | $375 | +31% | Sells the power and cooling gear every AI data center needs | Data center spending slows; cooling rivals catch up |
| Seagate Technology | Wamsi Mohan | $1,150 | +25% | Hard drives effectively sold out, with capacity booked into 2028 | Cloud orders slow; flash storage takes share |
| Albemarle | Matthew DeYoe | $155 | +19% | Lithium demand rebounding on grid battery storage | Rivals add supply and cap prices |
| Talen Energy | Rinny Singh | $422 | +18% | More data center power deals once grid rules are settled | Existing contracts renegotiated; power prices swing |
| Lam Research | Vivek Arya | $385 | +14% | Chip factory equipment spending seen reaching $250B by 2028 | Spending cycle slows; China restrictions |
| Atlassian | Koji Ikeda | $175 | +5% | Cloud revenue guided to grow 25.5% next year | Software valuations compress further; competition |
Prices as of Aug. 13 close. Source: BofA Global Research.
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