Yahoo Finance's Brian Sozzi discusses SpaceX CEO Elon Musk's post on X praising Micron for being reasonable on future memory prices while others have been extortionate. Sozzi speculates Micron may be offering favorable pricing to Musk's companies, including SpaceX, Tesla and Boring Company, which could mean lower profits for Micron given the memory chip shortage. He links this to Goldman Sachs' view that memory chip price growth may slow next year and that prices may already be near a peak.
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Elon Musk praised Micron for being 'reasonable' on future memory prices while calling other suppliers 'extortionate', saying customers will remember how they were treated during the memory shortage. The article links this to Micron's multiyear strategic customer agreements: 26 agreements covering at least 35% of projected revenue through 2030, with $150 billion in remaining performance obligations. These deals give Micron more demand visibility and may reduce its exposure to the sector's cyclical pricing swings, while its gross margin is materially higher than Nvidia, Broadcom and Taiwan Semiconductor. Wall Street expects about $176 in EPS for fiscal 2027, and with shares near $938 on Oct. 14, the forward P/E is about 5.3. The author argues the stock may be undervalued and that customer loyalty could support growth beyond the current memory cycle.
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