Musk Says Micron's Fair Memory Prices Will Win Loyalty as Stock Extends Slump

Micron shares ended lower for a fourth straight session, and Elon Musk, the chief executive of SpaceX, responded by saying the company had kept future memory prices reasonable while competitors sought “extortionate” rates.

His comments answered an X post from an analyst recapping a positive JPMorgan report on the memory chipmaker. The note’s strong contract figures, however, were not enough to stop Tuesday’s slide.

A $150 Billion Backlog Wasn’t Enough to Halt Micron’s Slide

Micron ended Tuesday at $953.19, down 3.62% on the day. Over the five most recent sessions, the stock has fallen 11.54%.

Even so, Micron shares are still up roughly 223% in 2026.

Much of the selloff has been traced to China. ChangXin Memory Technologies (CXMT), the country’s leading memory maker, has reported advances on denser DRAM designs, and investors fear that fresh supply could bring the current shortage to an end.

JPMorgan’s analysts, by contrast, see demand that is already locked in. Their count shows 26 long-term customer deals covering more than 35% of Micron’s revenue through 2030.

The bank further pegs contracted backlog at $150 billion, with $32 billion of customer cash already put down. Based on the analyst’s summary, buyers have reserved over 75% of next year’s output as well.

JP Morgan just put out a new note that’s super bullish on memory and storage!!! $MU now has 26 long term deals covering 35%+ of revenue through 2030. $150B in contracted backlog. $32B in customer cash already committed. Over 75% of next year's output already sold. $SKHY $SNDK https://t.co/l5L1koXt3S

— Nicholas Mugalli (@RealNickMugalli) October 13, 2026

Musk Sees Fair Memory Pricing Paying Off After the Shortage

Musk cast Micron’s pricing restraint as a play for loyalty that could reward the stock later. Customers, in his view, will keep in mind which suppliers squeezed them while the shortage was unfolding.

Micron has been reasonable regarding future memory prices, while others have been extortionate, which is something today’s customers won’t forget …

Micron is making is the smart move for long-term customer loyalty.

— Elon Musk (@elonmusk) October 13, 2026

Musk uses Micron memory indirectly, because the Nvidia chips powering his AI data centers near Memphis are built with it. In April, he also mentioned Micron as an existing supplier while discussing his Terafab chip project. Still, the two sides have not announced a direct agreement.

Meanwhile, Micron, Samsung, and SK Hynix have moved capacity toward high-bandwidth memory (HBM), the stacked chips found inside AI accelerators. That pivot has made conventional DRAM supply tighter and pushed prices higher, helping produce Samsung’s record quarterly profit.

JPMorgan expects the shortage to persist through 2028. If that forecast holds, Micron’s pricing discipline matters most after the shortage ends, when buyers can again choose freely. Until then, the stock trades between Wall Street price targets near $1,500 and worries about a coming wave of Chinese supply.