New Contracts Yield Unprecedented Forward Visibility

Research evidence excerpt

New Contracts Yield Unprecedented Forward Visibility

Company Report

June 25, 2026 Micron Technology Inc (MU)

Rating: New Contracts Yield Unprecedented Forward VisibilityOUTPERFORM

Price:

$1,048.51 Micron again beat Street expectations for the reported quarter, while guiding

12-Month Price Target: handily above consensus for the forward period. The surprise, in our view, rather

$1,400.00 (from $1,300.00) was the level of detail that Micron was able to provide around the forward contracts

it has negotiated for a significant portion of its forward bit output, with the new

deals seemingly providing unprecedented revenue, margin and earnings certainty

Analysts for an elongated period.

Matt Bryson ●(617) 695-6302 Micron talked to having 16 strategic customer agreements (SCAs) in place that

matthew.bryson@wedbush.com include smaller (predominantly automotive), medium, and 4 larger customers.

Antoine Legault, CFA, CPA ● In total the deals currently represent 20% of MU's DRAM output and 1/3 of

(626) 497-1619 NAND sales today. However, MU believes that when it has completed the

antoine.legault@wedbush.com negotiating of SCAs across its customer base, that these deals will represent

50% (or more) of Micron's total output.

● The largest deals stretch through CY2030 and include price ceilings (in-line withCompany Information - Hardware

Market Cap (M) $1,186,117 CQ2 pricing) and floors that stretch through the length of the agreements,

Enterprise Value (M) $1,177,993 with management indicating that the pricing floors are set at levels that should

52-Week Range $103.38 - $1,213.56 provide MU with margins above what the company realized during prior cyclical

REV (M) in $ peaks.

FYE Aug 2025A 2026E 2027E ● The agreements are guaranteed by cash deposits and financial commitments