Micron's New Strategy Will Face SK Hynix and Samsung's $575 Billion Spending Plans
How much can Micron protect against the massive supply entering the market at the end of the decade?
Overview
Micron Technologies (NASDAQ: MU) blew away expectations with its most recent earnings report. The company posted record profitability while quintupling revenue year over year.
But perhaps the biggest takeaway from Micron's earnings report was management's disclosure of new strategic customer agreements (SCAs). Micron signed long-term agreements with some of its largest customers, creating more predictable demand and pricing for its chips over the next three to five years.
Details
That's important because Micron's biggest competitors, SK Hynix (KOSE: A000660) and Samsung (OTC: SSNLF), are about to invest huge sums of money in building out additional capacity. It'll be a major test for Micron's new strategy.
Source
Originally published at www.fool.com.