UBS: Micron Technology's long-term contract is solid enough to withstand potential market downturns in the next few years

Analysts at UBS said in a research note that Micron's long-term contracts with customers are solid enough to at least survive any downturn in the market in the next few years. Investors may worry that these contracts could be shaken if the market slows, but the minimum price for the contracts is set low enough that it will not be until 2029, and more likely 2030, at the earliest, before enough supply will come online to break the price bottom line and prompt customers to consider default.<br /> Analysts at UBS said Micron Technology also received cash advances from customers, which could eventually be close to $40 billion to $50 billion, which could serve as a solid cushion for default damages if the situation worsens.