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Micron Repriced After Blowout Quarter and $100 Billion of Take‑or‑Pay Deals

Investors pushed the stock higher after the company paired a record quarter with multi‑year contracts that management says leave supply tight through 2027.

Overview

  • Micron reported record fiscal Q3 revenue of $41.46 billion and EPS that beat estimates, and it guided fiscal Q4 revenue near $50 billion with about $31 in EPS following its late‑June earnings report.
  • The company disclosed 16 Strategic Customer Agreements, with 14 carrying roughly $100 billion in minimum commitments and customers putting down $22 billion in deposits to secure supply.
  • Profitability and cash flow jumped as gross margin rose to about 84.9% and Micron reported $18.3 billion in adjusted free cash flow for the quarter.
  • Markets reacted quickly with the stock rising roughly 15–18% to new 52‑week highs and multiple banks sharply raising price targets into the $1,550–$2,000 range while the company briefly eclipsed peers in market value.
  • Analysts warn the gains depend on how long tight HBM and DRAM supply persists because new capacity from Samsung and SK Hynix could ease prices in 2027–28 and the $22 billion in deposits and HBM ramp costs create timing and margin risks for Micron and its customers.