LeHao

[Milk Road AI @MilkRoadAI]

Micron just reported earnings and the numbers were historic but the most important thing that happened today wasn't the quarterly print (Save this).

It was the three slides on Strategic Customer Agreements.

For 47 years, Micron was a commodity business.

Memory prices went up, Micron made money, memory prices went down, Micron lost money.

Every investor who ever touched the stock lived and died by that cycle but that cycle is now structurally broken.

Micron has signed 16 Strategic Customer Agreements, binding, multi-year, take or pay contracts with customers across data centers, consumer devices, auto, and industrial applications.

Take or pay is the critical phrase in that sentence.

These are not soft purchase commitments or letters of intent but rather legal obligations, customers must buy specific volumes over the contract term, or pay penalties if they don't.

The demand is contractually guaranteed regardless of what happens to the broader memory market.

The agreements run from calendar 2026 through the end of 2030, five full years of committed supply locked in at the exact moment AI infrastructure spending is accelerating into its steepest phase of growth.

The pricing structure is what makes the floor so durable.

The largest agreements have a ceiling price set at current market prices and a guaranteed floor price locked in through the entire term of the agreement.

That floor is set high enough that even in a deep memory downturn, Micron's gross margins under these agreements would still sit well above any peak quarterly margin the company has ever posted in its entire prior history.

Customers have also agreed to provide $22 billion in cash deposits and financial commitments upfront meaning they are literally pre-paying billions of dollars just to secure their memory allocation years in advance.

When fully executed, these SCAs will cover half or more of Micron's total company revenue.

Approximately 40% of all revenue will be locked in at fixed or ceiling prices at or near current market levels, with the remaining SCA volume operating within the guaranteed floor-to-ceiling pricing band.

What Micron has built here is not just a better quarter or a stronger cycle but rather a durable, high-margin, predictable revenue engine on top of what used to be the most volatile business in the entire semiconductor industry

And they have done it by converting their largest customers from buyers of a commodity into long-term partners with billions of dollars of skin in the game.

The boom bust cycle that defined this company for five decades is over.

Milk Road is tracking every detail of Micron's SCA transformation and what it means for the memory market going forward.

Come join Milk Road Pro for just a dollar to get the rest of our AI trades using the link below!

[Elon Musk @elonmusk]

I wrote this 8 years ago
https://t.co/r9GdXpUDe2

[jack @jack]

steph

[Barrett O'Neill @barrettjoneill]

Steve Jobs used this pricing strategy to sell 40 million iPads:

Price Anchoring.

What it is & how to use it: 🧵

[LeHao @lehao66]

@JustinLDW I think Kyrgios

[Chris Hladczuk @chrishlad]

If you use it right, Google is the most powerful tool in the world.

But the truth is most people suck at it.

Here are 8 Googling tips that you probably don't know👇

[Giannis Antetokounmpo @Giannis_An34]

Happy birthday 🐐🙏🏽

[Aruni M. @aruni_93]

UMNO basically

[Yeo Bee Yin @yeobeeyin]

You meant the ever confusing SOPs?

[Lim Wei Jiet @lim_weijiet]

UMNO back in power after overwhelmingly kicked out in GE14.

This is beyond sad & demotivating.

But this is what they want u to feel. To make u lose hope, give up & say "Why bother voting?".

We mustn't fall for this. We can't afford to. We must fight & give our all come GE15.

[Nga Kor Ming @NgaKorMing]

Sila retweet jika anda sayangkan negara kita dan tidak mahu mengulangi kesilapan diperintah oleh Kerajaan Gagal 2.0, terima kasih ya. #TolakKerajaanGagal

[LeHao @lehao66]

Back to square one… or worse

[Thevesh @Thevesh]

[Breaking! Unverified] Real-time imagery of Malaysia's current cabinet.

[Khairy Jamaluddin 🇲🇾🌺 @Khairykj]

We had a very good July & are on track for our Aug targets. PICK has started to show early positive results but we must continuously strive to get as many people vaccinated as quickly as possible so our people & economy can recover & our nation can heal.