A booth of Micron Technology at an industrial fair in Frankfurt, Germany.

The dip in Micron's stock is a great buying opportunity, according to Bank of America Merrill Lynch.

The firm reiterated its buy rating for Micron shares, predicting strong financial results for the memory chipmaker.

Micron shares declined 9.9 percent Thursday after Morgan Stanley and an executive at large chip equipment company warned that the memory chip market was deteriorating versus expectations. The stock is down 25 percent during the past three month as investors worry about the semiconductor cycle.

"We believe the recent share-price correction is mostly based on concerns of a downturn. Our research indicates record-high revenue/profit," analyst Simon Woo said in a note to clients entitled "Earnings fundamentals solid." There is a "favorable business environment" for Micron.

Micron shares closed up 0.5 percent Friday.

The analyst is optimistic about the memory chip market after conversations with semiconductor supply chain companies. He disputes both the notion chip inventories are high and there is weakness in orders.

As a result, Woo reaffirmed his $100 price target for Micron shares, representing 124 percent upside to Thursday's close.

"We expect good/in-line 4Q FY18 results … positive guidance on 4Q FY18 call," Woo said in Friday's note.

Micron is slated to report its fiscal fourth quarter earnings results on Sept. 20.