Investing.com -- Bank of America has increased its forecast for the artificial intelligence data center systems market to approximately $1.7 trillion by 2030, up from a previous estimate of $1.4 trillion, representing a 45% compound annual growth rate.

The bank expects 2026 to see accelerating AI sales and returns on investment, with upcoming initial public offerings from OpenAI and Anthropic anticipated to provide improved prospects. The firm projects 2027 could bring better tokenomics and efficiency as new architecture compute and memory systems become available.

Bank of America raised its AI accelerator outlook to roughly $1.2 trillion from $1.0 trillion, driven by increased hyperscaler custom ASIC shipments, including Google TPU and AWS Trainium. The data center server CPU forecast increased to approximately $110 billion, with AI CPUs accounting for $88 billion, up from $80 billion. The AI networking outlook rose to around $316 billion from $240 billion.

The bank noted that diversification of compute and memory components will be additive to the overall market as AI workload requirements expand. CPUs are expected to work alongside existing GPU-CPU compute racks, while SRAM-based ultra-low-latency memory racks will coexist with HBM-based GPU racks.

Bank of America raised its price target for Micron Technology (NASDAQ: MU) to $950 from $500, based on a sum-of-parts valuation. The new target values the sustainable AI and HBM business at approximately $240 per share and the traditional DRAM and NAND business at roughly $710 per share.

The bank's top picks include Nvidia (NASDAQ: NVDA) with a price target raised to $320 from $300, Broadcom (NASDAQ: AVGO), Micron, Advanced Micro Devices (NASDAQ: AMD), and Marvell Technology (NASDAQ: MRVL) with a price target increased to $200 from $125.