Memory Market Update Read-through from MU’s 3QFY26 results; granular updates on LTAs bode well for sector valuation re-rating

研报英文原文证据摘录

Memory Market Update Read-through from MU’s 3QFY26 results; granular updates on LTAs bode well for sector valuation re-rating

J P M O R G A N Asia Pacific Equity Research

26 June 2026

Memory Market Update

Read-through from MU’s 3QFY26 results; granular

updates on LTAs bode well for sector valuation re-rating

• Granular updates on LTA. MU (OW, covered by JPM’s Harlan Sur) Technology - Semiconductors

AC disclosed 16 SCAs (strategic customer agreements) with granular details Jay Kwon

including: 1) The floor and ceiling prices are determined based on previous (82-2) 758-5725

peak level and 2Q26 memory price; 2) LTAs are mostly structured on 5-year jay.h.kwon@jpmorgan.com

terms (CY26-CY30) with a take-or-pay agreements; 3) The minimum value of J.P.BranchMorgan Securities (Far East) Limited, Seoul

the 14 LTAs using the floor prices amount to US$100bn; 4) MU expects to

Sangsik Lee

receive cash deposits and financial commitments of $22bn; 5) The LTAs (82-2) 758 5146

represent Micron’s 20% of DRAM and one-third of NAND volume; 6) If all sangsik.lee@jpmorgan.com

the LTAs are executed, MU expects LTAs to account for >50% of its total J.P. Morgan Securities (Far East) Limited, Seoul

Branch

revenue; 7) The counterparty for the LTAs include four very large, three

medium-sized customers (JPMe: hyperscalers) and auto/consumable Neelay Y Kamath

(91-22) 6157 3764

customers; 8) The LTA includes diverse applications including HBM, DRAM neelay.kamath@jpmchase.com

and NAND; and 9) the contract terms vary by customers. J.P. Morgan India Private Limited

• JPM view: We were surprised by the degree of SCA disclosure from MU’s

management and the substance covered during the call was constructive to

stay bullish on the top-down memory industry’s structural development,