Micron Technology praised by Elon Musk for reasonable memory pricing

Elon Musk has publicly commended Micron Technology for its approach to future memory pricing, stating the company is making a smart move to secure long-term customer loyalty. While Musk did not explicitly name competitors, his comments regarding others being ‘extortionate’ and using ‘near-extortion’ contract terms are widely interpreted as targeting South Korean manufacturers Samsung Electronics and SK Hynix.

The praise comes amid a period of intense demand for high-bandwidth memory (HBM) and DRAM, driven by the global artificial intelligence build-out. While memory demand is expected to remain tight through 2027 and 2028, Micron is reportedly working to reduce market cyclicality through take-or-pay agreements and price floor/ceiling deals, which have already secured approximately 35% of its revenue through 2030.

Despite the positive sentiment from Musk, Micron’s stock has recently faced downward pressure, closing lower in recent sessions. Market analysts attribute this volatility to concerns over rising yields and technological advancements in China, specifically from ChangXin Storage (CXMT), which is making strides in memory density technology.