Elon Musk recently criticized Samsung and SK Hynix for what he described as extortionate memory chip pricing. In a post on X, he contrasted their approach with Micron, noting that Micron is prioritizing long-term customer loyalty by maintaining more reasonable pricing structures for future supplies.
Micron reported significant financial growth in its fourth fiscal quarter of 2026, with total revenue reaching $54.23 billion and a GAAP gross margin of 81%. The company's mobile and client segment generated $13.114 billion with a 90% non-GAAP gross margin, while its data center storage business saw $18.002 billion in sales with a 90% margin.
To secure supply, Micron has entered into 26 strategic agreements, covering over 35% of its projected revenue through 2030. These contracts include $32 billion in financial commitments from customers. Meanwhile, Samsung has reportedly secured long-term contracts for 75% to 80% of its planned 2027 output, with SK Hynix pursuing similar strategies.
Analysts anticipate that memory supply shortages will continue until at least 2028. This market environment provides manufacturers with significant leverage in contract negotiations, as demand for AI infrastructure continues to absorb available capacity for DRAM, HBM, and NAND products.
