Micron joins rivals pitching AI deals as cure for memory's boom-bust cycle
Key takeaways
- SAN FRANCISCO, June 25 (Reuters) - Memory chipmakers have for decades been trapped in boom-bust cycles, with capacity buildouts hitting the market just as demand craters.
- The U.S. company's deals follow in the footsteps of SK Hynix and Samsung, which have also been signing long-term supply agreements with their customers.
- The moves are key to winning over investors wary of the AI boom's durability, with memory stocks leading a $1 trillion-plus rout earlier this week stoked in part by valuation concerns.
Micron joins rivals pitching AI deals as cure for memory's boom-bust cycle Stephen Nellis, Zaheer Kachwala and Aditya Soni Thu, June 25, 2026 at 10:22 PM GMT+7 3 min read MU 005930.KS 000660.KS NVDA By Stephen Nellis, Zaheer Kachwala and Aditya Soni
SAN FRANCISCO, June 25 (Reuters) - Memory chipmakers have for decades been trapped in boom-bust cycles, with capacity buildouts hitting the market just as demand craters. Micron, Samsung and SK Hynix are now trying to convince investors this time is different, arguing long-term deals will keep cash flowing even if the datacenter boom bursts.
Micron said on Wednesday customers such as Nvidia had committed $22 billion to lock in supplies of memory chips, playing up huge growth in five-year "take-or-pay" deals that require clients to either buy its chips or hand over cash.