New York, July 16, 2026, 09:22 EDT
- Micron was set to open at $862.70, off 4.6% in premarket Nasdaq action.
- The stock dropped 8.0% Wednesday to finish at $904.28.
- About 20% of DRAM volume is under signed deals, while it’s a third for NAND.
Micron Technology, Inc. (NASDAQ: MU) dropped 4.6% to $862.70 in premarket trade Thursday. This comes even after it announced fresh long-term auto supply deals. The Nasdaq session hadn’t started yet.
Micron’s new contract shield has limits. DRAM brought in 76% of revenue last quarter, but the strategic deals signed so far only protect about 20% of DRAM volume.
NAND’s coverage is higher, with deals tied to about a third of its volume. NAND made up 24% of sales last quarter. That leaves Micron’s main unit with more market price risk.
Micron’s numbers also point to the mismatch.
| Business | Fiscal Q3 revenue | Revenue share | Volume under 16 signed agreements |
|---|---|---|---|
| DRAM | $31.3 billion | 76% | Roughly 20% |
| NAND | $9.9 billion | 24% | Roughly 33% |
Revenue mix and volume coverage track different things. The comparison still points to spots where contracts offer less protection.
The deals are big. Fourteen out of 16 have minimum revenue of about $100 billion. Micron is looking for $22 billion in deposits and related commitments. Most of these agreements stay in place until 2030. The auto contracts usually go three years.
The deals are take-or-pay, locking in buyers for set volumes. Micron is looking to get at least half its revenue from these contracts once the new agreements are in place. CEO Sanjay Mehrotra said they will “significantly enhance the durability and predictability” of results.
Qualcomm Incorporated (NASDAQ: QCOM) and Harman struck deals on Thursday to support supply and manage pricing for AI-powered vehicles. “Automakers are looking for platforms that bring together high-performance compute, connectivity, memory and storage,” Qualcomm CEO Cristiano Amon said. Reuters
The rout spread wider. SK hynix Inc. (KRX: 000660) slid 11.5% in Seoul trading. Samsung Electronics Co., Ltd. (KRX: 005930) fell 8.8%. Korean authorities stepped in, restricting leveraged single-stock funds after they were blamed for the swings.
The risk cuts both ways. If supply ramps quicker or AI demand drops, excess DRAM could weigh on prices. Still, Micron sees shortages in the industry past 2027. If they’re right, the selloff on Thursday might be overdone.
Auto deals are giving Micron just a slight boost in visibility. Most of the company’s core revenue isn’t touched by these contracts yet. That helps explain why shares and contracts are going in different directions.
