Micron Technology, Inc.: New SCA Details Lend Confidence to Growth Story

Research evidence excerpt

Micron Technology, Inc.: New SCA Details Lend Confidence to Growth Story

Equity Research

U.S. Semiconductors & Semiconductor Capital Equipment

25 June 2026

Micron Technology, Inc.

New SCA Details Lend Confidence

to Growth Story

Signed 16 SCAs setting up significant revenue stability at a MU OVERWEIGHT

minimum through the next 5 years. Unchanged

U.S. Semiconductors &

Semiconductor Capital NEUTRAL

Equipment

Coming into the quarter our view was that the company needed to give details around the SCAs Unchanged

in order to give customers comfortability on the print. The given details are better than we Price Target USD 2000.00

would have expected with both revenue commitments and number of customers. The SCAs are raised 70% from USD 1175.00

take-or-pay agreements across 16 customers spanning Data Center, Consumer, and Auto Price (24-Jun-26) USD 1048.51

markets with four large customers and three medium-sized customers. The smaller agreements Potential Upside/Downside +90.7%

generally are for Automotive customers. The normal SCA is for a five-year term from CY26 Source: Bloomberg, Barclays Research

through CY30 except for Automotive which is for three years. Agreements either have fixed

pricing, pricing bands, or are subject to market conditions but are generally expected to be in

U.S. Semiconductors & Semiconductorsimilar ranges. There can still be pricing upside on new products that are introduced. The

Capital Equipment

current agreements represent roughly 20% of total DRAM volume and 33% of NAND volume over

Tom O'Malley

the stated period. When all SCAs are signed (including expected future deals), management +1 212 526 0692

expects more than 50% of company revenue to come from these SCAs. The SCAs (including thomas.omalley@barclays.com