Micron Technology, Inc. stock experiences a price reversal after a period of significant growth and high investor expectations.
Micron Technology, Inc. stock experienced a price reversal on Thursday, moving from a premarket surge to approximately 2.0% lower at $919.105. This shift occurred despite the company delivering a staggering latest quarter with $41.46 billion in revenue and an 84.6% gross margin. Investors have priced in years of tight supply and premium pricing. To mitigate future risks, the company signed 16 strategic customer agreements. These are take-or-pay contracts, meaning customers are committed to buying specific volumes of DRAM and NAND over a five-year term ending in 2030. Fourteen of these agreements carry cumulative revenue at minimum prices of roughly $100 billion over the remaining term. While these contracts provide a floor for revenue, they also include price ceilings for existing products set at calendar Q2 2026 market prices. Management expects revenue under these agreements to run well above the minimum figures. The company has guided fiscal Q4 2026 revenue to a record $50 billion, plus or minus $1 billion.
Sources
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The Floor Under Micron’s Worst Case Is Written Into Its Contracts, Not Memory Prices
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