The U.S. company Micron, which specializes in the manufacture of electronic chips, has made an announcement of paramount importance for the computing and video game industries.
Micron has signed 16 strategic agreements with customers to lock in historically high memory prices for the next five years. The company explains that the price floor includes “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.”
This means that memory prices will remain extremely high at least through 2031, so don’t go and expect the next generation of consoles to be more affordable.
“Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve. Even as we expect industry supply to improve gradually in 2028, we currently do not have line of sight as to when memory supply will be able to catch up with increasing demand.”
Following this announcement, Micron’s stock rose by more than 15%. A year ago, the company’s stock was trading at $127. It is now valued at $1,213. Micron reported record revenue of $41.5 billion for its most recent quarter. Quarterly sales surged 346% compared to the previous year.
