- Elon Musk publicly endorsed Micron on October 13, 2026, praising its fair approach to future memory pricing.
- MU stock initially rose 0.7% in overnight trading but closed at $914.13 on October 14, down 4.08%, and has since fallen nearly 16% over five sessions.
- Micron has signed 26 long-term customer contracts covering over 35% of revenue through 2030, providing a pricing floor that could soften the next downturn.
- Memory prices remain near record highs, with DRAM selling prices up roughly 180% in fiscal 2026, though analysts expect a 53% drop in 2028.
Elon Musk gave MU stock a public nod on October 13, 2026, after the Tesla and SpaceX CEO said Micron has stayed fair on future memory pricing, unlike rival vendors. His comment arrives as Micron memory prices sit near record highs, and as the company’s customer contracts — 26 long-term deals running through at least 2030 — now cover over 35% of its revenue.
Musk replied on X to a bullish JPMorgan note on memory, stating: “Micron has been reasonable regarding future memory prices, while others have been extortionate… Micron is making the smart move for long-term customer loyalty.” Elon Musk is a major memory buyer via his xAI (now SpaceXAI) and the Colossus AI data-center complex. The bounce in MU stock did not hold, however. Micron closed at $914.13 on October 14, down 4.08%, and slipped further to $875.15 in overnight trading; the stock is down nearly 16% over five sessions but still up about 220% year to date.
Micron’s customer contracts give it a protective cushion that the memory cycle never offered before. Three quarters of the expected deal revenue comes with price bands that set a floor and ceiling, and customers have committed $32 billion in cash deposits. Micron CEO Sanjay Mehrotra stated: “To date, we have signed 26 SCAs, which we currently estimate to be over 35% of our revenue through 2030.” According to institutional analyst Nicholas Mugalli, Micron also holds a $150 billion contracted backlog, with over 75% of fiscal 2027 output already sold.
Despite these buffers, the Micron memory cycle remains a risk. Bernstein expects DRAM prices to climb another 43% in 2027 and then drop 53% in 2028. Mehrotra added: “We expect memory and storage supply-demand conditions to be much tighter in calendar 2027 and 2028 than they were in 2026.” Revenue jumped 256% to about $133 billion, but the stock trades near 13 times earnings, signaling that profits may cool once prices fall. Chinese rival CXMT is also adding pressure with denser DRAM designs. For the MU stock forecast, roughly 74% of Micron’s sales still react quickly to supply and demand shifts, meaning the real test will come when memory prices turn lower.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Solana Cuts Finality From 12.8 Seconds to 150 Milliseconds
- TSMC in talks with Musk’s Terafab, insists on running the plant
- Crypto hacks hit $1.18B in Q3 as third-party tools exploited
- GhostAction targets 30k GitHub repos in new supply chain wave
- Sectora Foundation Launches Final Testnet for Four Products
