TLDR
- Micron (MU) stock was down about 4% on Wednesday after Elon Musk praised its memory pricing on X.
- Musk said Micron was “reasonable” on future prices while others were “extortionate.”
- A JPMorgan note says Micron has 26 long-term supply deals and $150B in remaining performance obligations.
- More than 75% of Micron’s fiscal 2027 output has been sold, according to the post Musk replied to.
- Micron raised its buyback authorization to $35.16 billion, with repurchases set to start Dec. 9.
Micron (MU) stock was down about 4% on Wednesday, even as Elon Musk praised the company’s memory pricing. The post on X drew plenty of attention from investors.
Musk wrote that Micron “has been reasonable regarding future memory prices, while others have been extortionate.” He added that it is “the smart move for long-term customer loyalty.”
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.
— Elon Musk (@elonmusk) October 13, 2026
Musk was replying to Nicholas Mugalli, an institutional TMT research analyst. Mugalli had shared a bullish JPMorgan note on the memory and storage industry.
X users called it a “bull posting” from Musk. Yahoo Finance joked that Micron executives are probably sleeping a little easier.
What the JPMorgan note says
The note says Micron has signed 26 long-term supply agreements. They cover more than 35% of its revenue through 2030.
Remaining performance obligations total $150 billion. That includes $32 billion in customer cash already committed.
More than 75% of Micron’s fiscal 2027 output has been sold, according to the post. New agreements are being signed at elevated prices.
JPMorgan said that could keep Micron’s gross margin floor above past cycle peaks. A gross margin of roughly 62% served as the reference point.
The bank also expects SanDisk and Korean memory vendors to announce progress on their own long-term agreements. Details were not given.
Musk’s link to Micron
Musk’s xAI, now part of SpaceXAI, runs the Colossus and Colossus 2 data centers near Memphis, Tennessee. Together they provide about 1 gigawatt of computing power.
Micron memory is used in Nvidia graphics processors in those facilities. Musk has also named Micron, Samsung and Taiwan Semiconductor as suppliers while discussing his Terafab chip project.
No direct deal between Micron and Musk’s companies has been announced. Memory prices have jumped as AI data centers seek more advanced chips.
Counterpoint Research said DRAM, NAND flash and HBM prices rose 80% to 90% in the first quarter of 2026 from the prior quarter. Micron, Samsung and SK Hynix have focused on high-bandwidth memory, which tightens supply of conventional DRAM.
Micron’s earnings report several weeks ago beat on every line item, with guidance to match. Sales rose about $43 billion from a year earlier and more than $13 billion from the prior quarter.
Operating margins topped 80% in some segments, and executives expect tight capacity and higher prices until 2028. JPMorgan analyst Harlan Sur said cost cuts and new technology should help gross margins in coming quarters.
Last week, Micron raised its stock repurchase authorization to $35.16 billion. Buybacks can start Dec. 9, once CHIPS Act restrictions lift.
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