Wall Street analysts are declaring cyclical skeptics completely “offsides” following Micron Technology Inc.‘s (NASDAQ:MU) structural shift toward $100 billion in secure contracts, a move that proves the stock is “still cheap” even after soaring to record highs.
The Commentary Leading the Charge
Tech investors are completely reassessing Micron’s valuation. Gary Black pointed out that despite the stock’s pre-market spike, the shares are “still cheap,” trading at just 9x a 2027 adjusted EPS of $135.
The question for $MU coming into last night’s earnings was not how big the memory-chip boom is, but how long it can last. The correct answer appears to be: Longer than anyone originally thought. Perhaps the most important number from last night’s report was 16 — the number of…
— Gary Black (@garyblack00) June 25, 2026
Futurum Equities’ Shay Boloor echoed this sentiment, stating that the massive $100 billion contract shift means the traditional “cyclical commodity label” is now totally “offsides.” Boloor emphasized that customers are effectively absorbing the downside cyclical risk.
The most important part of $MU earnings was the strategic customer agreement structure Micron is building around the business.Micron has now signed 16 SCAs with 14 of them representing ~$100B of cumulative revenue at minimum contract pricing over the remaining term which shifts… pic.twitter.com/eTDu7V96B9
— Shay Boloor (@StockSavvyShay) June 25, 2026
Deepwater Asset Management’s Gene Munster added that hyperscaler demand shows “no end in sight,” predicting their capex growth could hit 40% to 60% next year—crushing the Street’s 22% expectation.
Munster noted that Micron extending its supply tightness warning to “beyond 2027” proves the industry simply cannot keep up with AI infrastructure needs.
The most underappreciated data point on MU’s earnings call was that the number of five-year SCAs increased from one last quarter to seven this quarter. That’s significant because it suggests customers expect this buildout to last for at least five years and want greater pricing… pic.twitter.com/nGxCM2yNYo
— Gene Munster (@munster_gene) June 24, 2026
Read Also: Micron Just Gave AI Investors Exactly What They Wanted
The $100 Billion Contract Shift
The catalyst for this rerating is 16 new Strategic Customer Agreements. These multi-year, take-or-pay contracts lock in roughly $100 billion in cumulative revenue.
By agreeing to minimum contract pricing and upfront cash deposits, buyers are ensuring supply assurance for AI workloads. This structural shift guarantees gross margins “well above” previous peaks, fundamentally altering Micron’s historical boom-and-bust narrative.
Shattering Earnings Expectations
This strategic evolution was paired with a massive fiscal third-quarter beat. Micron reported $41.5 billion in revenue and an elite 84.9% gross margin.
Fourth-quarter guidance was even stronger, projecting $50 billion in revenue with margins accelerating to 86%. As memory transitions from a low-value component to a scarce, highly critical strategic asset, analysts overwhelmingly agree that the AI memory supercycle is truly just beginning its long-term run.
How Has MU Performed In 2026?
MU shares have risen by 267.37% year-to-date, and 39.62% over the last month; additionally, it has surged 719.72% over the year. It closed 0.31% lower at $1,048.51 apiece on Wednesday, and it was higher by 17.70% in premarket on Thursday.
Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend across the short, medium, and long terms, with a solid quality score.
Read Also: Micron Earnings Call Expectations And Reality: Here's What Prediction Market Punters Were Hoping The Firm Would Say And What Got Said
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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