Svmuu News UBS Analysts stated in a research report that Micron’s long-term contracts with customers are robust enough to weather any market downturns for at least the next few years.Investors may worry that these contracts could be undermined if the market slows, but the minimum prices are set low enough that it won’t be until 2029 at the earliest—and more likely 2030—before sufficient supply comes online to break the price floor and prompt customers to consider defaulting.
UBSAnalysts note that Micron has also received cash prepayments from customers, which could ultimately total close to $40 billion to $50 billion—a solid buffer against potential contract breaches should conditions deteriorate. (Jin Shi)