Investment Advisor Ross Gerber Calls Micron Decline Overdone — Cites Multi-Year Supply Agreements

• Micron has recently highlighted multi-year supply agreements and strong customer commitments amid elevated high-bandwidth memory demand for AI systems.
• MU stock is down on ChangXin Memory Technologies’s reported advances on a 4F square cell architecture intended to increase storage density. 
• SpaceX CEO and billionaire CEO Elon Musk aggravated investor concerns, highlighting China’s manufacturing prowess.

Micron Technology (MU) shares fell again on Tuesday, extending a multi-day slide that has pulled the memory-chip maker lower from recent highs, amid Monday reports that China’s ChangXin Memory Technologies (CXMT) has made progress on a denser memory cell design and aims to introduce related server products by the end of 2026.

Investment advisor Ross Gerber of Gerber Kawasaki addressed the move in a post on X. “Let’s be real. Micron has supply contracts for years out. Tons of demand and new Chinese ‘tech’ isn’t going to change one thing,” he wrote. “Nor would I want to use Chinese memory chips for security reasons.”

Chinese Progress Raises Pricing Concerns

CXMT’s reported advances on a 4F square cell architecture intended to increase storage density has weighed on memory stocks. The company has indicated plans to target DDR5 server memory, a segment that has supported strong pricing and margins for Micron amid AI-related demand. Investors have reacted by questioning how quickly additional Chinese capacity could affect the global supply balance, even though CXMT has not disclosed detailed specifications, yields, or confirmed large-scale production timelines.

SpaceX CEO Elon Musk weighed in on the memory-chip selloff in a post on X on Monday, responding to reports of CXMT’s design progress. “When China figures out how to manufacture a product, their ability to scale is often greater than the rest of the world combined. We saw this with lithium batteries and solar, for example,” he wrote.

On memory specifically, he added that RAM “was a low margin commodity only ~3 years ago” and that low-power standards such as LP5 and LP6 “are designed to a common standard that China seems to be solving fast.”

His remarks drew attention as Micron and other memory stocks extended their declines. U.S.-listed SK Hynix shares also dived 4% at the time of writing while SanDisk shares were down 3%.

Micron’s Supply Contracts

Micron has recently highlighted multi-year supply agreements and strong customer commitments amid elevated high-bandwidth memory demand for AI systems. On the company’s fiscal fourth-quarter 2026 earnings call on September 30, CEO Sanjay Mehrotra said Micron had signed 26 strategic customer agreements (SCAs), which management estimates will represent more than 35% of revenue through 2030.

These are multi-year take-or-pay contracts that include volume commitments and, for the majority, defined pricing frameworks with floor and ceiling prices. Customer financial commitments tied to the agreements have risen to $32 billion, mostly in the form of cash deposits, while remaining performance obligations stand at approximately $150 billion. Mehrotra added that more than 75% of Micron’s fiscal 2027 output is already committed across SCA and other customer arrangements, with discussions increasingly focused on 2028 volumes.

He also noted that customers are seeking SCA coverage well beyond 2030, with some new agreements and extensions running into 2031.

How Did MU Retail Traders React?

On Stocktwits, retail sentiment around MU stock fell from bullish to neutral territory over the past 24 hours, while message volume increased from normal to high levels.

A Stocktwits user voiced optimism for a bounceback.

Another dismissed concerns of competition, opining that no legitimate company would install Chinese memory chips.

MU stock has gained about 230% year-to-date. 

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