Micron sees strong AI-driven memory demand with new capacity only after 2028, boosting pricing power.

Micron expects significant new memory industry capacity to emerge only after 2028, supporting a prolonged period of tight supply and stronger pricing power. The demand for DRAM, NAND, and SSDs driven by AI is currently outpacing supply, which benefits Micron's financial performance. The company has transformed its financial profile with nearly $12 billion in operating cash flow, $7 billion in free cash flow, and a 30% dividend increase, reflecting durable earnings. Valuation appears reasonable at about 12.8x FY2026 and 7.3x FY2027 earnings per share, given Micron's strategic position and extended earnings visibility.