Micron Surges 15% on $100B Locked Supply Deals
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- Micron stock jumped roughly 15% to $1,148 after reporting quadrupled revenue, a more than tenfold earnings rise, and locking in 16 long-term supply deals worth approximately $100 billion; the chip shortage is projected to extend beyond 2027.
- Roughly 40% of Micron's revenue will come from contracts with fixed prices or price ceilings near current levels, with price floors enabling gross margins "well above" past cycle peaks.
- KeyBanc's John Vinh hiked his price target to $1,600 from $600, saying Micron "deserves to be further rerated."
- D.A. Davidson's Gil Luria raised his target to $2,000 from $1,500 in a note titled "New Era in Memory," calling Micron's visibility "some of the semi industry's best."
- SK Hynix rose 13% and Samsung Electronics climbed 5.3% in local trading on the Micron beat, while Intel, Marvell, and AMD all traded in the red.
- Wedbush analysts called the report a "much needed drop the mic quarter" and said they see "no cracks in AI demand" on chips, hardware, or software.
Why it matters: KeyBanc nearly tripled its Micron target to $1,600 from $600 and D.A. Davidson lifted its target to $2,000—both reflecting Wall Street's view that roughly $100 billion in locked long-term deals with price floors give Micron visibility unlike past memory cycles.
