Micron Signs 16 Long-Term Contracts and Highlights AI Memory Demand

Micron Technology has countered concerns about the cyclical nature of the memory semiconductor market by emphasizing the growing demand for artificial intelligence (AI) and securing long-term supply contracts. Memory demand is expanding from data centers to smartphones, PCs, vehicles, and robotics. Micron's CEO Sanjay Mehrotra highlighted the critical role of memory in AI infrastructure, stating that long-term contracts will enhance the sustainability and predictability of performance. In its third quarter results for fiscal year 2026, Micron reported revenues of $41.456 billion and a non-GAAP diluted earnings per share of $25.11, with fourth-quarter revenue guidance set between $50 billion and ±$1 billion. Micron has completed 16 strategic customer contracts, which account for approximately 20% of DRAM volume and one-third of NAND volume. Long-term contracts serve as a mechanism for customers to secure supply volumes over a specified period, ensuring stable access to memory for AI servers and high-performance devices. Micron announced plans to invest over $250 billion in the U.S. by 2035, with the first concrete pour at its New York Clay facility occurring more than a quarter ahead of schedule. However, the extent to which long-term contracts and AI demand will actually reduce price fluctuations will need to be confirmed in future results.