Bank of America removes Nvidia, Micron, and Lam Research from top stock picks

Bank of America has removed Nvidia, Micron Technology, and Lam Research from its US 1 List, the bank’s curated lineup of its strongest US equity ideas.

The three chip stocks still carry Buy ratings.

The US 1 List holds Bank of America’s top-rated US equity picks, chosen with long-term outperformance in mind. Inclusion is a signal of conviction. Removal is a signal that the bank wants that limited space for something else.

The research ties Micron’s exit to November 10, 2026. That same day, Micron’s stock closed at $733, up 6.25% on the session.

Nvidia and Lam Research leave alongside Micron, and both keep Buy ratings too.

Lam’s stay on the list was relatively short. The semiconductor equipment maker was added to the US 1 List in February 2026, when it took the place of AMD.

The AI spending case remains intact

Bank of America’s semiconductor thesis hasn’t gone anywhere. Analyst Vivek Arya has pointed to AI-driven cloud infrastructure spending as the main engine behind the sector.

Arya expects cloud capital expenditures of about $1.01 trillion for 2026. That figure nearly doubles 2025 spending, an increase of approximately 98%.

Arya also sees further growth into 2027, which supports the outlook for Micron, Nvidia, and Lam Research. Each touches a different part of the AI hardware stack.

Nvidia supplies the processors that train and run AI models. Micron makes the memory those systems rely on. Lam Research builds equipment used to manufacture chips in the first place.

Why this matters for investors

Buy ratings survived. The trillion-dollar cloud spending forecast survived. The case for growth into 2027 survived. What changed is the bank’s ranking of where its best ideas sit right now.

There is also the valuation question. Micron’s $733 close, posted on a day it gained 6.25%, shows how much enthusiasm is already built into chip stocks. Strong rallies can leave less room for the outsized gains that high-conviction lists aim to capture.

For the AI hardware trade as a whole, the key variable is still spending. Arya’s forecast of roughly $1.01 trillion in 2026 cloud capital expenditures gives the sector a large target to deliver against.