Micron Technology (MU) shares have returned 415% over the past twelve months, versus 17.3% for the S&P 500, yet the stock trades at 13.2 times earnings compared with 21.9 for the index. Investors doubt that profits earned during a memory shortage will last, while the company has signed long-term agreements covering DRAM and NAND chips through 2030, with about three quarters of the related revenue tied to a pricing framework that sets a floor and a ceiling. Management did not dispute an estimate that these agreements could cover 35% of sales by 2030, though it has not split the figure between DRAM and NAND or disclosed which customers signed. Micron’s Idaho facility is expected to produce its first output in mid-2027, a supply increase that worries some investors. Executives expect the memory market to stay tight through 2028, so the number of long-term agreements signed each quarter is the key measure to watch.
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