# Elon Musk Praises Micron Technology for Reasonable AI Memory Pricing Strategy

- URL: https://stocks.freetheai.org/news/elon-musk-praises-micron-technology-for-reasonable-ai-memory-pricing-strategy-485658
- Published: 2026-10-14T09:18:00Z
- Category: company_news; sentiment: bullish; impact: medium
- Symbols: [NASDAQ:MU](https://stocks.freetheai.org/symbols/NASDAQ-MU), [NASDAQ:NVDA](https://stocks.freetheai.org/symbols/NASDAQ-NVDA), [NASDAQ:TSLA](https://stocks.freetheai.org/symbols/NASDAQ-TSLA), [NASDAQ:SPCX](https://stocks.freetheai.org/symbols/NASDAQ-SPCX), [NASDAQ:SNDK](https://stocks.freetheai.org/symbols/NASDAQ-SNDK), [OTC:SSNLF](https://stocks.freetheai.org/symbols/OTC-SSNLF)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Elon Musk, chief executive of Tesla, Inc. (NASDAQ:TSLA) and Space Exploration Technologies Corp (NASDAQ:SPCX), publicly commended Micron Technology, Inc. (NASDAQ:MU) for its pricing strategy on memory chips as artificial intelligence infrastructure drives up component costs. Writing on social media, Musk noted that Micron has maintained reasonable pricing while prioritizing customer loyalty over short-term price increases.

The comments come as surging demand from AI data centers places significant pressure on global memory supplies. Prices for DRAM, NAND flash, and high-bandwidth memory climbed 80% to 90% in the first quarter of 2026 compared to the previous quarter. Micron products are integrated into NVIDIA Corporation (NASDAQ:NVDA) processors used in xAI data-center facilities.

Looking ahead, long-term supply agreements are helping semiconductor producers lock in multi-year revenue streams. Micron has finalized 26 long-term contracts representing $150 billion in remaining performance obligations, with $32 billion in cash already committed by customers. More than 75% of the company's output for fiscal year 2027 is already sold, helping support expected gross margins above historical cycle peaks.

## Key points

- Elon Musk commended Micron Technology, Inc. (NASDAQ:MU) for maintaining reasonable future memory prices amid surging demand for artificial intelligence hardware.
- Memory chip prices, including DRAM, NAND flash, and high-bandwidth memory, surged 80% to 90% in the first quarter of 2026 compared to the previous quarter.
- Micron has secured 26 long-term supply agreements accounting for over 35% of revenue through 2030, totaling $150 billion in performance obligations.
- Customers have already committed $32 billion in cash to Micron, with over 75% of the company's fiscal 2027 output sold under multi-year contracts.

## Questions and answers

### Why did Elon Musk praise Micron Technology?

Elon Musk praised Micron Technology for keeping memory prices reasonable and prioritizing long-term customer relationships as AI demand drives up chip prices across the semiconductor industry.

### How much revenue does Micron have locked in through long-term agreements?

Micron has secured 26 long-term supply deals covering over 35% of its revenue through 2030. These contracts represent $150 billion in remaining performance obligations, including $32 billion in cash already committed by customers.

### How much have memory chip prices increased in 2026?

Prices for DRAM, NAND flash, and high-bandwidth memory rose between 80% and 90% in the first quarter of 2026 compared to the previous quarter, driven by heavy demand from AI data center operators.