AI Stocks Shift: Goldman Adds Tech Giants, BofA Sees Micron Pullback as Buying Opportunity

Goldman Sachs has reshuffled its U.S. Conviction List, adding several tech giants and removing others. The bank's analysts highlight Microsoft as a key player in the AI revolution, expecting earnings per share growth to accelerate from 12% in fiscal 2027 to over 20% by fiscal 2029.

Goldman also points out that the true risk for technology stocks lies not in valuations but in the durability of their earnings growth. The bank's strategists argue that equity returns have broadened geographically and across sectors since 2025, reversing a fifteen-year pattern where U.S. market leadership dominated.

Meanwhile, Bank of America sees Micron's recent pullback as an 'enhanced buying opportunity', citing the company's improving fundamentals and earnings power. BofA models fiscal 2028 EPS of about $150, which it says discounts at roughly 8-9 times earnings under a bear-case scenario.

On the other hand, Western Digital was downgraded to Hold by Summit Insights due to risks tied to its shift to heat-assisted magnetic recording (HAMR) technology. The analyst expects higher costs to weigh on gross margins in 2027 and average selling price per exabyte to decline that year.