Key Takeaways:
- BofA upgraded 2026-2028 DRAM and NAND market forecasts by 2% to 4%.
- 2026 DRAM sales may surge 316% and NAND 295%, the report said.
- High-end HBM chips and long-term agreements are reshaping industry profitability.
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BofA raises storage market forecasts 4% as Micron confirms super cycle
Bank of America raised its global memory chip market forecasts by as much as 4 percent, citing Micron Technology Inc.'s strong earnings as confirmation of a storage super cycle.
"The results reinforce our view that the global storage industry is in a structural super cycle driven by AI demand for high-bandwidth memory," analysts at Bank of America wrote in a June 29 report.
The bank now expects 2026 DRAM sales to grow 316 percent year over year and NAND sales to climb 295 percent. In 2027, growth will moderate but remain elevated at 43 percent for DRAM and 29 percent for NAND, according to the report. BofA raised its 2026 through 2028 market size estimates by 2 percent to 4 percent.
Micron shares rose 4.5 percent Monday, extending a three-day winning streak, as investors priced in a prolonged upcycle. The report suggests memory chipmakers may sustain higher margins as high-bandwidth memory and long-term supply agreements reduce price competition, a shift that could transform the industry's business model.
The bullish outlook follows Micron's stronger-than-expected quarterly results, which reshaped the cycle outlook for global memory chips. HSBC separately raised its price target for SK Hynix Inc. by 56.6 percent to 4 million won, signaling broad analyst conviction in the AI-driven memory boom.
Bank of America said the rising share of high-end products such as HBM, combined with a shift toward long-term contracts, will help manufacturers avoid the price wars that have historically plagued the cyclical industry. The bank expects the super cycle to extend at least through 2027.
For Micron investors, the report signals that AI-driven memory demand is not a short-term spike but a multiyear structural shift. The next catalyst will be the company's fiscal fourth-quarter earnings in September, where guidance will test whether the super cycle thesis holds.
This article is for informational purposes only and does not constitute investment advice.
[1] Why Micron Stock Keeps Going Up[2] Micron Earnings Spark Memory Supercycle Consensus: Wall Street Forecasts Boom Extending to 2030, Industry Landscape Shifts[3] SK Hynix Q2 Earnings Exceed Expectations Amid DRAM and NAND Price Increases[4] Why Is Apple Stock Falling? Price Hike, Risks & AAPL Outlook
