UBS analyst forecasts Micron to meet only 60% of 2027 DRAM demand as supply gap widens

UBS analyst Timothy Arcuri expects Micron's supply-demand imbalance in memory chips to deepen through 2027, with the company able to fulfill approximately 60% of dynamic random-access memory demand at peak capacity. Arcuri projects significant growth in server-focused memory products and remains bullish on Micron's fundamentals, though he warns that long-term supply agreements with major customers will constrain revenue growth relative to unit volume. After CHIPS and Science Act restrictions lift in early 2027, Arcuri expects Micron to begin repurchasing shares, starting with approximately $20 billion quarterly before potentially ramping to $40-50 billion per quarter.

1. UBS analyst Timothy Arcuri estimates Micron will meet roughly 60% of DRAM demand in 2027, MarketWatch reported September 24.
2. Arcuri predicts significant growth in server double-data-rate memory and server/storage solid-state drives.
3. Long-term supply agreements with customers will limit revenue growth despite tight supply conditions.
4. Arcuri expects Micron to begin share repurchases of about $20 billion per quarter starting in February 2027, potentially ramping to $40-50 billion per quarter.
5. CHIPS and Science Act restrictions on Micron's capital allocation are expected to lift in early 2027.
6. Arcuri focuses on the 'durability of demand' and capital return rather than revenue guidance.