Micron announced a $250 billion investment plan in the U.S. over the next decade to boost AI chip production while securing critical raw materials for its operations. The company has established long-term supply agreements projected to cover nearly 50% of total revenues, including take-or-pay contracts ensuring at least $100 billion in future income. Following these developments, TD Cowen reiterated a Buy rating on the stock, as analysts expect supply constraints and robust demand to drive DDR prices higher through 2027.
Micron locks in $100 billion in minimum revenue through take-or-pay contracts to stabilize performance across semiconductor market cycles.
Read the full storyLong-term supply agreements are projected to cover 50% of revenues as robust demand drives memory prices through 2027.
Micron plans a $250 billion decade-long investment in the U.S. to expand AI chip manufacturing and secure critical raw material supply chains.