Micron Technology's (MU) long-term earnings outlook is firming as tighter supply for high-bandwidth memory supports stronger pricing, even as near-term expectations have moderated for NAND flash memory, which is used in solid-state drives and other devices, UBS Securities said in a report.

UBS raised its forecast for industry HBM average selling prices in 2027 to a 79% increase from 67%, with Micron's HBM pricing expected to climb 72%. Pricing for HBM4E, the higher-performance variant of HBM4, may exceed $30 per gigabyte, the report said.

Overall HBM consumption for 2027 is now expected to reach 61.5 billion gigabits, up from a prior estimate of 58.7 billion, despite changes to Nvidia's (NVDA) Rubin Ultra memory specifications, the report said.

NAND contract pricing continues to "trend positively," supported by stronger-than-expected demand for server and storage solid-state drives, the report said. UBS raised its NAND bit-demand growth forecasts to 23% for 2026 and 26% for 2027.

UBS adjusted its Micron EPS estimates to $74.13 for 2026, $184.89 for 2027 and $265.65 for 2028, all "well above" consensus, with cumulative free cash flow projected to top $450 billion through 2028.

UBS reiterated its buy rating on Micron Technology with a $1,625 price target.

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