Micron says roughly 40% of revenue, once supply agreements are completed, will
come from contracts signed at fixed prices or price caps near current levels;
those contracts include price floors, which Micron says will push gross margins
"well above" prior cycle peaks. Futurum's chief market strategist said this is
strong evidence for a memory supercycle but cautioned he would not permanently
value Micron solely on annualized gross-margin peaks, adding the correct read is
not that cyclicality has disappeared but that normalized profitability may have
risen materially and the next downturn could be more protected than investors
previously expected.
