Micron Technology’s stock is becoming a contest between near-term momentum and the durability of future demand, UBS analyst Timothy Arcuri said. Arcuri remains bullish on Micron’s fundamentals and expects the memory-chip supply-demand gap to widen into next year. He estimates Micron will satisfy roughly 60% of dynamic random-access memory (DRAM, a type of memory used for temporary data storage) demand in 2027, while also forecasting strong bit-demand growth for server double-data-rate memory and server and storage solid-state drives. UBS expects investors to focus on demand durability and capital returns because Micron’s long-term supply agreements could limit upside to revenue estimates. Once restrictions under the 2022 CHIPS and Science Act are lifted, Arcuri expects quarterly share repurchases to begin at about $20 billion in the February quarter of 2027 and potentially rise to $40 billion-$50 billion per quarter. Micron reports earnings next week, although Arcuri does not expect significant buyback commentary on the call. Competition is intensifying as China’s CXMT begins mass production of fifth-generation DRAM, while Micron expands U.S. production in Boise, Idaho, and Clay, New York. The capacity race is unfolding alongside demand from NVIDIA and Advanced Micro Devices, but a projected shortage of up to 157,000 semiconductor workers by 2030 could constrain expansion. Former hedge fund manager Martin Shkreli has turned bearish on Micron, while Michael Burry increased his bearish bets. Micron’s DRAM revenue nevertheless rose 343% year over year to a record $31.3 billion in its fiscal third quarter. Over the past year, the stock gained about 550% and closed Wednesday 2.22% lower at 1,071.88.