To The Moon

Micron Has Locked A Third Of Its NAND Volume Under Contract

The company-specific change happened weeks earlier, and it lands on how Micron sells its memory. It has signed 16 strategic customer agreements with data center and automotive customers, covering roughly 20% of its DRAM volume and a third of its NAND volume, typically on five-year terms running through the end of calendar 2030. They are take-or-pay commitments, backed by $22 billion of cash deposits and related financial commitments that management projects to receive. Management says that even at the contracted floor prices, margins land significantly above the company’s prior peak.

The floor is real without being large: 14 of those agreements guarantee about $100 billion at minimum prices spread across terms that run to the end of calendar 2030, against roughly $90 billion of revenue in the past twelve months alone. Management expects actual revenue to run well above that minimum. That floor, not the record 85% adjusted gross margin of fiscal Q3 2026, is the durable part. Margin that survives a downcycle, rather than margin that peaks in one, is the sort of quality the Trefis High Quality Portfolio holds its names to.

The Price Ceiling Only Covers What Micron Already Sells

The bullish memory story in the window is price: Apple’s chief executive told investors memory prices will keep rising. Micron captures less of that than it once did. Its largest agreements generally set a ceiling at the calendar Q2 2026 market price, and management expects fixed-price or ceiling-capped deals to reach roughly 40% of revenue once all planned agreements are signed. The escape hatch is new product: the ceilings cover existing products, and premiums on new ones are negotiated later. Micron has already shipped over $1 billion of HBM4 and says its 12-high version is ramping twice as fast as the previous generation.

Watch The Fiscal Q4 Guide, Not The Week

Micron has guided fiscal Q4 revenue to a record $50 billion, give or take $1 billion, with adjusted gross margin near 86%, and has already flagged a meaningful moderation in the rate of price increases inside that guide. The level keeps climbing; the rate of gain is what is slowing. Whether guidance keeps rising matters more than a week of tape, which is what our guidance-driven momentum screen tracks.

What Would You Do With A Gain Like MU’s 1,017%?

A move like this is even better to own than to watch, and it is also how one holding grows into an outsized share of a portfolio. MU is up 1,017% over the past five years, and gains like that are exactly how one holding quietly becomes too large a share of a portfolio. Whether that has happened in your portfolio is exactly what I can help you with. DM me or write to me.