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Micron locks in multi-year auto memory supply as AI demand accelerates
Micron completed strategic customer agreements with multiple automotive Tier 1 suppliers in July, adding longer-term visibility as AI server spending lifts memory demand.
Micron Technology said it has secured strategic customer agreements with a group of automotive Tier 1 suppliers, completed on July 16, as it seeks to smooth demand that historically swung with industry cycles. The deals were reached with Qualcomm, Visteon, HARMAN, JOYNEXT, DENSO, Astemo and Hyundai Mobis.
The company linked the automotive agreements to longer production lifecycles and qualification standards, saying locking in supply and pricing years ahead can reduce the order volatility that has hurt it during past downturns. It expects demand growth as vehicles add advanced driver assistance and in-cabin computing power that relies on more memory and storage.
Micron also pointed to AI as the bigger demand engine. Yahoo Finance reports that spending plans from Amazon and Alphabet are supporting memory chip demand for AI servers, and that in the nine months ended May 28, Micron revenue reached $79 billion, up 203% from the prior-year period, while net income hit $47 billion.
The outlet also noted that Micron has pushed customers toward five-year price agreements instead of one-year contracts, which were more exposed to sudden price swings. It says analysts expect revenue to grow 247% in fiscal 2026 and another 85% in fiscal 2027, and that the stock climbed nearly 690% over the prior 12 months before peaking in June and falling about 30% since.