Micron 4QFY26: Expecting shortage to sustain into CY28

Bernstein maintains its Outperform rating on Micron Technology (MU.US) following the company's 4QFY26 results. Micron has turned more bullish on the memory cycle, expecting supply to become "much tighter" in CY27 and CY28 than in CY26. Despite capacity increases, the company has no visibility on when the shortage will end due to new customer requests, implying tight supply could persist into CY28. On capital return, Micron reiterated its commitment to return excess cash to shareholders and will increase buybacks after December 9. Strategic Customer Agreements (SCAs) now cover about 35% of revenue through 2030 and could reach roughly 50%, with about three-quarters carrying price commitments;