Elon Musk lauds Micron’s pricing while the stock slides amid Chinese competition
SpaceX chief Elon Musk posted on X that Micron Technology is setting future memory prices at a level that is fair, unlike some rivals he described as overcharging. The comment came as Micron disclosed a $150 billion backlog of long‑term contracts covering more than 35 % of its revenue through 2030. Despite the endorsement, the shares fell 3.6 % to $953.19 on the day, pressured by worries that Chinese chipmaker CXMT could ease the current memory shortage.
Why it matters
The price drop shows that Musk’s praise did not offset investor concerns about new supply from China, keeping short‑term downside risk alive. The large contract backlog, however, signals strong future revenue visibility for the company, which may support longer‑term price power if shortages persist through 2028, according to JPMorgan analysts.
Key facts
- 1Elon Musk said Micron is setting future memory prices at a reasonable level while other suppliers are charging excessively high rates. benzinga.com
- 2Micron has 26 long‑term supply agreements that represent over 35 % of its revenue through 2030. benzinga.com
- 3The contracts amount to $150 billion in remaining performance obligations, including $32 billion of cash already received from customers. finance.yahoo.com
- 4Micron’s stock closed at $953.19, down 3.62 % on the day. benzinga.com
- 5Over the prior five trading sessions the shares lost 11.54 %. finance.yahoo.com
- 6JPMorgan expects memory shortages to continue through 2028, keeping demand for high‑bandwidth memory strong. finance.yahoo.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.