$MU Customers Are Funding the Memory Supercycle
🚨 The receivables argument against $Micron Technology(MU)$ is looking very different this quarter.
Last quarter, Michael Burry and other bears pointed to Micron’s receivables growing faster than sales, suggesting customers might be taking longer to pay.
This quarter tells a different story.
📈 Revenue: +31% Q/Q
📈 Receivables: +17% Q/Q
💰 Customer prepayments: $12.3B
That $12.3B is the number I’m watching.
Customers have effectively handed Micron $12.3B upfront through long-term contracts. That’s more than the $11.1B Micron spent on capex during the quarter.
Some of those contracts extend through 2031, with the associated cash paid back over the second half of the contract periods.
So the cash-flow dynamic looks very different from a customer-payment-delay thesis.
Customers aren’t just waiting to pay Micron. They’re locking in supply and putting cash down years in advance.
And that matters because you typically don’t commit billions upfront for a product you expect to become dramatically cheaper or easier to source. 👀
🔥 The broader numbers remain aggressive:
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Revenue: $54.2B, +379% YoY
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Gross margin: 87.0%
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Data-center SSD revenue: nearly $10B
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Long-term contracts: 26, up from 16
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RPO: roughly $150B
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Q1 FY2027 revenue guidance: $61.5B
$MU has now posted its sixth consecutive record-revenue quarter.
The market can keep debating whether memory is near a cyclical peak.
But when customers are committing billions upfront and locking in supply years into the future, the AI memory supercycle is giving investors a very different signal. 🧠🔥
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