Micron Technology Sells All 2026 Production Capacity

Micron Technology has sold its entire production capacity for 2026 as it leverages the artificial intelligence build-out to shift its business model toward long-term supply agreements. The company expects market tightness to intensify through 2027 and 2028, with demand for NAND and high bandwidth memory continuing to outpace supply.

To mitigate the volatility of commodity-style pricing and stabilize cash flows, the company is implementing take-or-pay agreements. These contracts establish price floors and ceilings, securing 35% of Micron's revenue through 2030.

While Micron plans to add new production facilities starting in mid-2027, management anticipates that the current market conditions will maintain elevated margins and high chip pricing for the foreseeable future.