Micron Shares Rise After Musk Praises 'Significant' Memory Chip Deal

Shares of Micron Technology (NASDAQ: MU) rose on Thursday after Tesla CEO Elon Musk publicly thanked the memory chip maker for a "very significant allocation" of components, signaling a deepening strategic partnership between the two companies.

On Tesla's second-quarter 2026 earnings call Wednesday evening, Musk praised Micron for providing the chips on "reasonable terms" at a time of extreme market tightness. The endorsement sent Micron's stock up 3.1% in intra-day trading, a stark contrast to Tesla (NASDAQ: TSLA), which fell 14.3% following its own earnings miss.

Musk's Endorsement

Musk's comments underscored the critical nature of the memory supply chain for Tesla's future projects. He described memory pricing as "pretty insane" and the recent increase as "the biggest price jump in anything I've ever seen."

"We really appreciate Micron making room for Tesla in the years to come and giving us actually a very significant allocation," Musk said, according to an earnings call transcript. The reference to "years to come" suggests a long-term supply arrangement, which is crucial for Tesla's heavy capital expenditures in AI compute, robotics, and its Robotaxi fleet.

Strategic Context

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While Micron has not publicly confirmed the specific terms of the deal, the announcement aligns with its strategy of securing long-term contracts. According to a recent report from TrendForce, Micron's Strategic Customer Agreements (SCAs) already account for a significant portion of its output:

• Roughly 20% of its DRAM production
• About one-third of its NAND volume

These multi-year SCAs, which lock in supply and pricing, have also reportedly been signed with other AI-driven customers, including GM, Ford, and Anthropic. It remains unconfirmed whether Tesla's arrangement is a formal SCA or a different form of long-term commitment.

Broader Market Impact

The positive sentiment extended beyond Micron, lifting other companies in the memory sector. Shares of Western Digital and SK Hynix both gained approximately 2%, while the Roundhill Memory ETF (DRAM) rose 2.6% in overnight trading. The gains were also supported by a separate disclosure from Alphabet, which raised its capital expenditure guidance, further signaling strong demand for high-end computing components.