Elon Musk Backs Micron’s Pricing Restraint After a 4-Day Stock Slide

SpaceX CEO Elon Musk mentioned Micron has stored future reminiscence costs cheap whereas rivals charged “extortionate” charges. He posted it after Micron inventory closed decrease for a fourth straight session.

Musk was replying to an analyst’s X submit that summarized a bullish JPMorgan observe on the reminiscence chipmaker. Yet the observe’s robust contract numbers did little to cease Tuesday’s promoting.

Why Micron Stock Slid Despite a $150 Billion Backlog

Micron shares closed at $953.19 on Tuesday, down 3.62% for the day. Over 5 classes, they misplaced 11.54%.

Still, Micron inventory stays up roughly 223% in 2026.

Much of the stress got here from China. ChangXin Memory Technologies (CXMT), the nation’s main reminiscence maker, reported progress on denser DRAM designs. As a outcome, buyers fear that new provide may finish the present scarcity.

However, JPMorgan analysts see locked-in demand. They depend 26 long-term buyer offers overlaying over 35% of Micron’s income via 2030.

In addition, the financial institution places contracted backlog at $150 billion, with $32 billion of buyer money already dedicated. According to the analyst’s abstract of the observe, patrons have additionally reserved over 75% of subsequent yr’s output.

Could Fair Pricing Become Micron’s Edge When Shortages End?

Musk framed Micron’s pricing restraint as a loyalty play, one that might repay for Micron inventory later. In his view, prospects will keep in mind which suppliers squeezed them in the course of the scarcity.

Musk buys Micron reminiscence not directly, since his AI information facilities close to Memphis run Nvidia chips constructed with it. In April, he additionally named Micron amongst current suppliers whereas discussing his Terafab chip project. Still, neither aspect has introduced a direct deal.

Meanwhile, Micron, Samsung, and SK Hynix have shifted capability towards high-bandwidth reminiscence (HBM), the stacked chips inside AI accelerators. That shift tightened typical DRAM provide and lifted costs, serving to Samsung’s record quarterly profit.

JPMorgan expects the scarcity to final via 2028. If that holds, Micron’s pricing self-discipline issues most afterward, when patrons can select once more. Until then, Micron inventory trades between Wall Street price targets close to $1,500 and fears of a Chinese provide wave.

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