Micron Technology Is Quietly Setting Up for a Strong Earnings Catalyst
Micron's growing list of long-term supply agreements could make its business more predictable and give investors an early read on future demand ahead of earnings.
Overview
Most of the attention on Micron Technology (NASDAQ: MU) sits on high-bandwidth memory and the artificial intelligence data center boom. That story is real, but it hides a different shift in how the company sells its products -- a shift that could shape the next earnings report more than any single chip.
In the first week of July, Micron announced two strategic customer agreements within six days of each other. A strategic customer agreement is, in plain terms, a promise from a buyer to keep buying.
Details
On July 1, it signed a deal with General Motors to secure a long-term supply of memory for the automaker's next vehicle platforms. On July 6, Micron announced a similar pact with Ford Motor Company.
Source
Originally published at www.fool.com.