Micron Stock Holds Steady as AI Deals Boost Earnings Visibility
Micron Technology’s stock hovered near flat in Wednesday’s premarket as investors factor in long-term AI-supply deals that could improve earnings visibility. Futurum analyst Rolf Bulk argues the deals may reduce cyclical swings and lift margins, with Micron expecting roughly half of revenue from such agreements over time. HBM margins remain elevated around 75%-80% and could settle around 70%-75% later this year into the decade, a level the analyst says remains unmatched by peers. CXMT remains behind incumbents, and MU’s premarket move reflects heavyweight ETF exposure to semiconductors like SOXX, SOXQ, and SPMO. MU was modestly higher in premarket trading.
