Micron $MU has over 35% of expected revenue through 2030 covered by contracts!

Micron has delivered another very strong quarter. The company continues to grow rapidly, and high demand for memory remains the main driver of current results.

Beyond the numbers themselves, management disclosed several pieces of information that I consider even more important for the years ahead. First and foremost, new long-term agreements with customers and significantly higher visibility into future revenue.

26 strategic agreements with customers

Micron currently has 26 strategic customer agreements in place.

In the previous quarter, there were only 16.

In a single quarter, the number of strategic agreements increased by 10, which in my view clearly shows how strong current demand for the company's products is.

But their overall significance is even more important.

According to management, these agreements represent more than 35% of Micron's expected revenue through 2030.

Some agreements extend as far as 2031.

Why is that 35% so important to me?

This figure is one of the most important pieces of information from the entire earnings report for me.

Micron historically operates in a highly cyclical industry. Memory supply and demand can change quickly, and prices fluctuate significantly along with them.

However, if the company can cover an increasing share of future business with long-term agreements, it gains much better visibility into future demand and revenue.

Micron can thus better plan production capacity and investments several years ahead.

Moreover, these are not just non-binding orders. Many contracts include long-term purchase commitments, and approximately 75% of expected revenue from these agreements has a predefined pricing framework.

That is another very important shift in my view.

Demand remains very strong

The development of the main business segments is also positive.

Demand for HBM, DRAM, and data center storage remains strong, and Micron continues to win new customers.

The combination of growing demand and long-term agreements is currently one of the most interesting aspects of the company's story for me.

Micron is not only growing, but also gradually securing an increasing share of future business for several years ahead.

And that is what I will be watching very closely in the coming quarters.

I discuss more in the video!

In the video, I also focus on what the CEO of SK Hynix thinks about a possible AI bubble and how Micron's management sees the company's further potential and the overall memory market.

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