Lates News

UBS analysts stated in a research report that the long-term contracts signed between Micron Technology and its customers are solid enough to withstand any market downturn in the coming years. Investors may be concerned that these contracts could be shaken if the market slows down, but the minimum pricing of the contracts is set low enough that there will not be enough supply coming online until at least 2029 or more likely 2030 to break the price floor and prompt customers to consider defaulting. UBS analysts also stated that Micron Technology has received prepaid cash from customers, which could ultimately amount to close to $40-50 billion. In the event of deterioration, this could serve as a solid cushion against default.