Story perspectives

Micron Locks 35% Revenue Through 2030 Amid Chip Shortage

By Drooid · Oct 16, 2026, 2:57 PM UTC · How we work

Summary

Story summary

Micron secures take-or-pay agreements locking about 35% of its revenue through 2030.
The company partners with Nvidia to create the first custom memory chip for Nvidia GPUs.
Demand outpaces capacity, delaying new production until mid-2027 and extending the current supply shortage.
Micron reports $150 billion in obligations and a gross margin that beats Nvidia, Broadcom and TSMC.
Analysts expect fiscal 2027 earnings of $176 per share, giving a forward P/E near 5.3.

History

Historical Context

In 1995 Samsung Electronics signed take-or-pay deals covering about 30% of its DRAM sales through 2000, a move that steadied a market later plagued by price spikes that nearly tripled between 2016 and 2018. Inspired by that model, Micron Technology’s 2024 agreements lock 35% of revenue to 2030 and pair with Nvidia for custom GPU memory, using the same risk-mitigating structure.

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Story summary

Micron secures take-or-pay agreements locking about 35% of its revenue through 2030.
The company partners with Nvidia to create the first custom memory chip for Nvidia GPUs.
Demand outpaces capacity, delaying new production until mid-2027 and extending the current supply shortage.
Micron reports $150 billion in obligations and a gross margin that beats Nvidia, Broadcom and TSMC.
Analysts expect fiscal 2027 earnings of $176 per share, giving a forward P/E near 5.3.

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