Organization: Micron Technology Advances LCO Landing, Supply-Demand Gap Expected to Continue

BlockBeats News, June 26th. Guojin Securities Research Report believes that Micron Technology is advancing long-term agreements, and the supply-demand gap is expected to continue. Micron Technology has completed 16 SCAs (Strategic Customer Agreements) with customers, covering downstream markets such as data centers, consumer electronics, and the automotive industry. The automotive customers in the SCA signed a three-year agreement, while other customers signed a basic five-year agreement. The 16 SCA agreements already account for 20% of Micron Technology's DRAM shipment volume and 1/3 of its NAND shipment volume.

The price range of the SCAs signed by Micron Technology can also bring profitability exceeding the previous cycle peak. Micron Technology expects the tight supply of DRAM and NAND to continue until 2027. Guojin Securities believes that the storage industry's supply is expected to remain tight, and Micron Technology is expected to sustain high profitability. Micron Technology's advancement of long-term agreements with downstream customers is expected to reduce the cyclical fluctuations in the company's product shipment prices and mitigate the company's performance cyclicality.