Micron Technology Secures $22 Billion in Long-Term Demand Contracts

Micron Technology has transitioned its business model by signing 16 new Strategic Customer Agreements. These binding take-or-pay contracts secure demand for one-third of the company's NAND and 20% of its DRAM volume, locking in $22 billion of demand through 2028.

The agreements guarantee gross margins that exceed any previous quarterly peak. However, the largest contracts include price ceilings based on market levels from the second calendar quarter of 2026, leading some investors to fear a cap on future profitability. This sentiment contributed to a 7.3% decline in stock price since June 24, 2026.

Despite the stock volatility, the company reports strong growth in its SSD business, which recently exceeded $5 billion in a single quarter. NAND growth reached 361% year-over-year, and management has provided guidance of record $50 billion revenue for the fourth quarter. Management also signaled the possibility of share buybacks after December.