Alpha Binwani Capital: “Micron’s $22 billion in binding, multi-year customer agreements—featuring take-or-pay provisions and fixed or floor-and-ceiling pricing—provide unusually strong visibility into memory demand, supply commitments, and future earnings. The structure does not eliminate cyclicality, but it meaningfully reduces the volatility investors associate with past memory downturns. Micron expects strategic-agreement margins to remain above the peak quarterly levels of prior cycles even at contractual floor prices, supporting a fundamentally stronger profit model: gross margin surged from 38% a year earlier to 85% in Q3, with roughly 86% guided for Q4”
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