Micron’s 16 customer agreements guarantee $100 billion in revenue, signaling a potential end to the chip industry’s boom-bust cycle.
Micron Technology (NASDAQ:MU) has locked in $100 billion in minimum guaranteed sales through 2030 via 16 long-term customer agreements, driving a 16% stock surge. The deals reflect confidence in sustained demand amid AI-driven growth.
Fiscal Q3 revenue hit $41.456 billion, up 345.72% year-over-year from $9.3 billion, with non-GAAP EPS of $25.11 beating estimates. Gross margins reached 84%, marking the seventh consecutive quarter of earnings beats.
The company plans $40 billion in capex next year to expand capacity, a move historically tied to industry downturns. Analysts, however, now question whether the traditional memory cycle is over, given structural demand shifts.