What Is Really Behind Micron Stock's Run?
Investors may still think profit at Micron Technology (MU) moves with memory chip prices. The company did run an operating loss three years ago. Yet the stock returned 457% in the past twelve months, a climb that appears hard to square with a business that can swing to a loss. Buyers of the stock may be betting on the multi-year supply contracts Micron has signed with customers. That creates the central question. So, how much of Micron's business is already committed.
Investors may still think profit at Micron Technology (MU) moves with memory chip prices. The company did run an operating loss three years ago. Yet the stock returned 457% in the past twelve months, a climb that appears hard to square with a business that can swing to a loss. Buyers of the stock may be betting on the multi-year supply contracts Micron has signed with customers. That creates the central question. So, how much of Micron's business is already committed.
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