BofA Reiterates Micron Buy on Memory Roadmap and Supply

Key Moments

Bank of America kept its buy rating on Micron Technology, citing improved visibility into memory supply dynamics through 2027 and 2028.
Supply and capacity agreements now extend roughly five years beyond 2030, with a goal of having about 50% of sales under such contracts by 2030.
Micron plans to boost share repurchases funded by free cash flow starting December 9, with $35 billion currently authorized for buybacks.

Bank of America’s Stance on Micron

Investing.com – Bank of America has reaffirmed its buy rating on Micron Technology (NASDAQ:MU) following a series of investor meetings in New York and Boston with the company’s senior leadership. The firm pointed to Micron’s competitive position in memory technology and greater clarity around supply trends through 2027 and 2028 as key factors supporting its view.

The discussions with investors came on the heels of Micron’s technology and product webinar, where the company detailed its trajectory in high-performance memory solutions.

Executive Meetings and Long-Term Supply Commitments

Bank of America analysts held meetings with several top Micron executives, including Chief Operating Officer Manish Bhatia, Chief Technology Officer Scott DeBoer, Chief Financial Officer Mark Murphy, and Corporate Vice President of Investor Relations Satya Kumar.

These sessions followed conversations about Micron’s supply and capacity agreements, which now stretch to approximately five years beyond 2030, with negotiations for 2031 already in progress. The agreements involve committed bit volumes along with associated financial commitments.

Micron expects that around 35% of its total sales will be covered by these long-term arrangements and is targeting an increase to 50% of sales under such agreements by 2030.

Metric	Detail
Current share of sales under long-term agreements	Approximately 35%
Target share of sales under long-term agreements by 2030	50%
Duration of agreements	Approximately five years beyond 2030, with 2031 talks underway

Supply Constraints and Capacity Environment

Management indicated that present memory specifications are being driven by constraints in memory supply rather than by limitations in compute, land, power, or shell availability. According to the company, both graphics processing unit vendors and hyperscale data center operators are utilizing the logic and chip-on-wafer-on-substrate capacity that is currently accessible.

Technology Roadmap Across HBM, DRAM, and NAND

Micron detailed its technology roadmap covering high-bandwidth memory (HBM), dynamic random-access memory (DRAM), and NAND flash. The company stated it is able to support HBM stacks ranging from 4-high to 16-high, and can also provide custom HBM configurations tailored to specific use cases.

In DRAM, Micron anticipates four more planar nodes after the 1-gamma process node. It is targeting volume production of its 1-delta node in the second half of 2027.

For NAND, Micron’s G11 generation is designed to exceed 400 layers and to deliver double the bit capacity of the G9 generation by the end of 2027.

Segment	Roadmap Detail	Timeframe (if stated)
HBM	Supports 4-high to 16-high stacks and custom HBM variants	Not specified
DRAM	Four additional planar nodes following 1-gamma; 1-delta targeted for volume production	Second half of 2027 for 1-delta
NAND (G11)	Targets more than 400 layers and 2x bit capacity versus G9	By the end of 2027

Capital Returns and Free Cash Flow Outlook

Micron’s management noted plans to step up share repurchases using free cash flow beginning December 9. Bank of America projects that the company will generate annual free cash flow of $150 billion to $200 billion in 2027 and 2028. Micron currently has approximately $35 billion authorized for stock buybacks.