Elon Musk Praises Micron’s 26 Deals

(*26*)MU inventory obtained a public endorsement from Elon Musk on October 13, 2026, after the Tesla and SpaceX CEO said Micron has stayed fair on future memory pricing, in contrast to rival distributors. His remark arrives as Micron reminiscence costs sit close to report highs, and as Micron’s buyer contracts, 26 long-term offers operating by way of at the least 2030, now cowl over 35% of its income. That cushion additionally shapes the MU inventory forecast, because it may soften the subsequent downturn within the Micron reminiscence cycle.

(*26*)Also Read: Micron Stock: Revenue Soars 379% to $54.23B as AI Memory Demand Surges

MU Stock, Elon Musk’s Praise, and Micron’s Memory Price Risks

(*26*)Elon Musk’s reward gave MU inventory a quick carry, with shares rising 0.7% in in a single day buying and selling on Tuesday. The bounce didn’t maintain, although. Micron closed at $914.13 on October 14, down 4.08%, and slipped to $875.15 in in a single day buying and selling. At the time of writing, the inventory is down practically 16% over 5 classes amid a wider chip sell-off, however it’s nonetheless up about 220% 12 months up to now.

What Elon Musk Said About Micron

(*26*)Musk replied on X to Nicholas Mugalli, an institutional TMT analysis analyst who shared a bullish JPMorgan be aware on reminiscence. Elon Musk had this to say:

(*26*)“Micron has been reasonable regarding future memory prices, while others have been extortionate, which is something today’s customers won’t forget. Micron is making is the smart move for long-term customer loyalty.”

(*26*)His phrases matter for MU inventory as a result of Elon Musk is an enormous reminiscence purchaser proper now. His xAI, now a part of SpaceXAI, runs the Colossus AI data-center complicated close to Memphis, and the Nvidia GPUs inside carry Micron reminiscence. Musk additionally named Micron as an present provider in April, when he talked about his Terafab undertaking.

How Micron’s Customer Contracts Change The Memory Cycle

(*26*)Micron’s buyer contracts give it a sort of safety from the Micron reminiscence cycle that it by no means had earlier than. Three quarters of the anticipated deal income comes with value bands that set a flooring and a ceiling, and the remaining will get negotiated at market charges. Customers additionally dedicated $32 billion, principally in money deposits. Micron CEO Sanjay Mehrotra said:

(*26*)“To date, we have signed 26 SCAs, which we currently estimate to be over 35% of our revenue through 2030.”

(*26*)According to Mugalli, Micron additionally holds a $150 billion contracted backlog, and over 75% of its fiscal 2027 output has already been offered. That backlog helps clarify why the MU inventory Elon Musk singled out has consumers lining up for provide.

What The MU Stock Forecast Depends On

(*26*)The Micron reminiscence cycle has not gone away. Bernstein expects DRAM costs to climb one other 43% in 2027 after which drop 53% in 2028, and JPMorgan sees shortages lasting by way of 2028. Mehrotra stated:

(*26*)“We expect memory and storage supply-demand conditions to be much tighter in calendar 2027 and 2028 than they were in 2026.”

(*26*)Micron reminiscence costs did a lot of the heavy lifting this 12 months, with DRAM promoting costs up about 180% in fiscal 2026 and shipped quantity up solely within the mid-20s p.c. Revenue jumped 256% to about $133 billion, however the inventory trades close to 13 occasions earnings, an indication the market expects earnings to chill as soon as costs fall. Chinese rival CXMT can be including strain with denser DRAM designs.

(*26*)For the MU inventory forecast, the contracts and Elon Musk’s backing rely for one thing, however roughly 74% of Micron’s gross sales nonetheless react quick to produce and demand shifts. That means MU inventory will face its actual take a look at when Micron reminiscence costs flip decrease.