TLDR
- Micron (MU) stock traded down about 4% on Wednesday despite praise from Elon Musk.
- Musk said Micron was “reasonable” on future memory prices while others were “extortionate.”
- A JPMorgan note says Micron has 26 long-term supply deals and $150B in remaining performance obligations.
- More than 75% of Micron’s fiscal 2027 output is already sold, according to the post Musk replied to.
- Micron lifted its buyback authorization to $35.16 billion, with purchases allowed from Dec. 9.
Micron (MU) stock traded down about 4% on Wednesday, even after a public thumbs up from Elon Musk. Investors were weighing his X post alongside a bullish JPMorgan note.
Musk wrote that Micron “has been reasonable regarding future memory prices, while others have been extortionate.” He called it “the smart move for long-term customer loyalty.”
His post was a reply to Nicholas Mugalli, an institutional TMT research analyst. Mugalli had shared the JPMorgan note on the memory and storage industry.
Some X users called it a “bull posting.” A nice compliment, but the tape did not agree.
What the JPMorgan note says
Micron has signed 26 long-term supply agreements. They cover more than 35% of its revenue through 2030.
Remaining performance obligations total $150 billion. Of that, $32 billion is customer cash already committed.
More than 75% of fiscal 2027 output is sold, according to the post. New agreements are being signed at higher prices.
JPMorgan said this could keep Micron’s gross margin floor above past cycle peaks. It used a gross margin of about 62% as a reference point.
The bank also expects SanDisk and Korean memory makers to share progress on their own long-term deals. No details were given.
Where Musk fits in
Musk’s xAI, now part of SpaceXAI, runs the Colossus and Colossus 2 data centers near Memphis. Together they provide about 1 gigawatt of computing power.
Micron memory is used in Nvidia GPUs at those sites. Musk has also named Micron, Samsung and Taiwan Semiconductor as suppliers while discussing his Terafab chip project.
No direct deal between Micron and Musk’s companies has been announced. Counterpoint Research said DRAM, NAND flash and HBM prices rose 80% to 90% in the first quarter of 2026 from the prior quarter.
Micron’s earnings report several weeks ago topped estimates on every line, including guidance. Sales rose about $43 billion from a year earlier and more than $13 billion from the prior quarter.
Operating margins topped 80% in some segments. Executives expect tight capacity and higher prices until 2028.
JPMorgan analyst Harlan Sur said new technology, the sale of non-core assets and cost cuts should help gross margins in the coming quarters.
Last week, Micron raised its stock repurchase authorization to $35.16 billion. Buybacks can begin on Dec. 9, once CHIPS Act restrictions lift.
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