Micron and Sandisk Shift to Long-Term Memory Chip Pricing

Micron Technology and Sandisk are restructuring their business models to eliminate the historical price volatility and cyclicality of the memory chip market. Both companies are moving away from commodity-style pricing to achieve stable valuations comparable to other large technology stocks.

Micron has established strategic agreements with clients to set long-term price floors and ceilings through 2031. As part of its growth strategy, the company signed a deal with Nvidia to develop custom high bandwidth memory (HBM) specifically for GPUs.

Sandisk is implementing New Business Model agreements that lock clients into structured pricing and committed sales volumes. The company expects these contracts to cover 50% of its production volume in the next fiscal year, increasing to two-thirds of its volume by 2028.