Bank of America reaffirms Micron Buy as multiyear memory deals support sector rally
On October 26, Bank of America maintained its Buy rating and $1,550 price target for Micron after meetings with executives. Micron expects supply agreements to cover approximately 35% of sales, with a longer-term objective of 50% by 2030. The company also outlined a DRAM roadmap targeting 1-delta volume production in the second half of 2027 and G11 NAND development with more than 400 layers by the end of 2027.
Why it matters
Bank of America says longer customer agreements should improve visibility into future memory demand, although that remains an analyst view. Micron's planned increase in share repurchases could raise shareholder returns if approved, while the broader memory-stock rally also lifted SanDisk and Western Digital.
Key facts
- 1Bank of America said Micron's customer supply agreements now run three to five years, compared with a year or less previously. 247wallst.com
- 2Micron has approximately $35 billion in authorised share repurchases and intends to increase repurchases using free cash flow beginning on 9 December, according to Bank of America. finance.yahoo.com
- 3Micron shares rose 4% to $913.77, while Western Digital gained 5% to $362.32 and SanDisk increased 3% to $1,271.99. 247wallst.com
- 4Bank of America analyst Vivek Arya said the firm expects about 35% of Micron's sales to be covered by customer agreements and roughly 50% by 2030. tipranks.com
Open questions
- SK Hynix had not confirmed the reported special dividend of about $12 billion and said it was reviewing shareholder-return options.
Summary written by AlphAI AI Desk from 8 of 9 sources. Not investment advice. Figures are as stated by the linked sources.