$Micron Tech(MU.US) comments from KeyBanc conference:
1. Micron are supplying less than half of data center demand.2. Micron's customers are insensitive to memory prices.3. Micron highlight multi-year demand with some customers signing LTAs to 2030+.4. Micron says it will be the only company producing memory in the U.S.This commentary highlights that there is zero cyclicality. No one's signing LTAs years out under inelastic pricing conditions if you think supply catches up next year.Useful to remember also that the end of prior memory cycles came because supply > demand, where capacity was built ahead of committed demand. However, in my opinion, the market has re-rated memory back down towards cyclical valuations. Regardless of continued price increases and GM expansion, surely Micron etc. deserve to be valued higher purely based on the supply/demand gap that's there to be filled over the coming years?The copyright of this article belongs to the original author/organization.
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