Is a Deal With Ford and a $100 Billion Backlog Enough to Get Micron Stock Back Over $1,200?
Key Points
Micron traded at a 52-week high of $1,255 on June 25.
The stock price has dipped below $1,000 for a variety of reasons which could include profit-taking and a recent sell-off in chip stocks.
The memory and storage company has locked in 16 long-term agreements that could generate $100 billion in revenue over the next five years.
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After hitting a 52-week high of $1,255 on June 25, the Micron Technology (NASDAQ: MU) stock price has since retreated below $1,000. There's a likely mix of factors that have led to that decline and that are keeping the stock price from rebounding, ranging from potential profit-taking to a chip stock sell-off to increased competition from SK Hynix's listing on the Nasdaq.
In the background, however, there was a July 6 announcement from Micron that seemed to get buried.
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Micron locks in Ford
On July 6, Micron Technology announced that it had entered into a long-term agreement, which it called a strategic customer agreement (SCA), with Ford to help strengthen the automaker's vehicle production. "Producing the high-volume vehicles of the future in the U.S. will require a resilient supply chain," Ford CEO Jim Farley said in the announcement.
Micron didn't offer specifics about the deal's value. But it did say the SCA was part of a collective 16 it discussed in its 2026 third-quarter earnings call.
In that call, Micron shared that it had strategic agreements, ranging from deals with automakers to hyperscalers, spanning three to five years. From those 16 agreements, it has $22 billion in deposits and financial commitments. In total, those agreements are expected to generate over $100 billion in revenue, a figure that may be conservative.
The news alone didn't push Micron back to its 52-week high of $1,255. But working to lock in future revenue over the years ahead can help it shed its cyclical reputation, building a stronger case for Micron as a long-term investment.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
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