Micron stays a buy rating at BofA on memory supply outlook and tech gains

Bank of America maintains a buy rating on Micron Technology following investor meetings in New York and Boston with company executives last week. The firm cited the company’s position in memory technology and improved supply visibility through 2027 and 2028.

Bank of America analysts met with Micron’s Chief Operating Officer Manish Bhatia, Chief Technology Officer Scott DeBoer, Chief Financial Officer Mark Murphy, and Corporate Vice President of Investor Relations Satya Kumar after the company’s technology and product webinar.

The meetings followed discussions about supply and capacity agreements that now extend approximately five years beyond 2030, with talks for 2031 already underway. These agreements include committed bit volumes and financial commitments, with about 35% of total sales expected under such agreements and a target of 50% by 2030.

Management indicated that current memory specifications reflect memory supply constraints rather than limitations in compute, land, power, or shell resources. Both graphics processing unit vendors and hyperscale data center operators are working with available logic and chip-on-wafer-on-substrate capacity.

Micron outlined its technology roadmap across high-bandwidth memory, dynamic random-access memory, and NAND flash. The company said it can support HBM configurations from 4-high to 16-high stacks, along with custom HBM variants for specific applications.

For DRAM, Micron expects four additional planar nodes after its 1-gamma process, with volume production of 1-delta targeted for the second half of 2027. In NAND, the G11 generation targets more than 400 layers and double the bit capacity of G9 by the end of 2027.

Management said it plans to increase share repurchases using free cash flow starting December 9. Bank of America estimates annual free cash flow of $150 billion to $200 billion for 2027 and 2028. Micron currently has about $35 billion authorized for buybacks.