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Micron Posts Record Quarter and Secures $100 Billion in Customer Guarantees as Stock Retreats

The multiyear take‑or‑pay contracts and sold‑out HBM capacity give the company unusual near‑term revenue visibility that will test whether AI‑driven prices hold as new supply comes online.

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Micron's broader U.S. investment commitment stands at $200 billion in manufacturing and R&D, expected to create more than 90,000 jobs.

Overview

  • Micron reported record fiscal Q3 results on June 24 with about $41.46 billion in revenue and non‑GAAP EPS of $25.11 and guided roughly $50 billion in revenue and $31.00 in EPS for the next quarter.
  • Management disclosed 16 Strategic Customer Agreements, most structured as take‑or‑pay, that include roughly $100 billion in minimum revenue commitments and about $22 billion in customer deposits, providing upfront cash and sales visibility.
  • The company said advanced high‑bandwidth memory (HBM3E/HBM4) is effectively sold out through 2027, and Micron has shipped more than $1 billion of HBM4, while new U.S. fabs are planned to begin wafer output in mid‑2027 with larger ramps in 2028.
  • Investors pared gains after a massive run‑up in the stock, producing a sharp one‑day drop of about 10% during early July as traders weighed profit‑taking, glut fears from potential new capacity and headlines about a $250 million Trump Accounts commitment.
  • Micron is committing large U.S. investments and talent programs, including a stated $200 billion manufacturing and R&D plan and $300 million for workforce development, but execution timelines, competitor expansion and legal or regulatory scrutiny remain material risks to future margins.