Micron (MU): Pre-selling $32B of memory that doesn't exist [Q4 2026]

Micron has converted commodity memory into prepaid, multi-year contracted revenue, but take-or-pay enforceability remains untested if AI demand cools.

• Record quarter: Micron posted $54.2B revenue (+379% YoY), EPS of $33.42, and non-GAAP gross margin of 87%, yet the stock closed roughly flat.
• Take-or-pay backlog: Dozens of Strategic Customer Agreements lock in ~$32B of commitments through 2030; CEO Sanjay Mehrotra said over 75% of 2027 output and much of 2028 discussion is already committed.

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