UBS: Micron's long-term contracts are solid enough to weather potential market downturns in the coming years

Odaily Planet Daily News UBS analysts said in a research report that Micron Technology's long-term contracts with customers are solid enough to withstand any market downturn for at least the next few years. Investors may worry that these contracts could waver if the market slows, but the minimum prices set in the contracts are low enough that sufficient supply will not come online to break the price floor and prompt customers to consider breaching contracts until at least 2029, and more likely 2030.

UBS analysts said Micron Technology has also received prepaid cash from customers, which could eventually approach $40 billion to $50 billion, serving as a solid penalty buffer if the situation deteriorates. (Jin Shi)