The author argues Micron is shifting from selling memory chips on demand to contract-based revenue, as AI companies have consumed most available capacity and memory prices have risen. Micron has signed several multi-year agreements through 2030 with floor and ceiling prices and has locked in about 35% of revenue through 2030, which the author says should smooth out its cyclical swings, much like logic-chip peer TSMC. TSMC trades at 24 times forward earnings while Micron trades at 5.1 times, and the author believes the stock could be repriced significantly if the market recognizes this change. He describes Micron as a long-term investment that deserves a more average multiple rather than a deep discount.
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