Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk said Tuesday that Micron Technology Inc. (NASDAQ:MU) has handled future memory pricing fairly, while taking a swipe at other suppliers for overcharging.
Customers Won’t Forget Pricing
In a post on X, Musk said Micron “has been reasonable regarding future memory prices, while others have been extortionate, which is something today’s customers won’t forget.”
He added that Micron’s approach is “the smart move for long-term customer loyalty.”
He was replying to an X post from Nicholas Mugalli, CEO and principal of World Trade Securities, who had highlighted a new JPMorgan bullish note on memory and storage.
Futurum Equities Chief Market Strategist Shay Boloor said Micron could turn the “goodwill” Musk described into longer contracts and more market share when supply eventually loosens.
JPMorgan Sees a Tighter Memory Market
JPMorgan said that the setup for memory is “meaningfully stronger than 90 days ago,” with demand running well above supply.
The firm models shortages of about 20% in 2026, 19% in 2027, and 15% in 2028, and projects the high-bandwidth memory market to reach about $160 billion in 2027 and $280 billion in 2028, up from roughly $64 billion in 2026.
Micron has stepped up to 26 long-term customer agreements from 16, covering more than 35% of revenue through 2030, with $150 billion in remaining performance obligations. More than 75% of fiscal 2027 output is already committed.
Memory Stocks Wobble on China Worries
Shares of chipmakers extended their losses on Tuesday on concerns that China’s ChangXin Memory Technologies is making progress on a chip design that packs more memory into a smaller space.
On Monday, Micron lost about $52 billion in market value, SK Hynix Inc. (NASDAQ:SKHY) about $41.5 billion, and SanDisk Corp. (NASDAQ:SNDK) roughly $15 billion.
Price Action: Micron fell 3.62% on Tuesday to close at $953.19 and rose 0.32% to $956.20 in extended trading.
Benzinga Edge rankings indicate Micron’s stock has a Momentum score in the 99th percentile and a Quality Score in the 97th percentile.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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