Micron’s order book has never looked fuller. That made no difference to traders last week, who sold the stock as if the fabs were half empty.
The sellout is real. Manish Bhatia, the chief operating officer, confirmed Thursday that every wafer planned for the company’s new Taichung assembly and test site in Taiwan has already been claimed through 2027. Sanjay Mehrotra, the chief executive, counts 26 binding long-term purchase agreements, a backlog extending to 2030.
Buyers, not sellers, are the ones squeezed. Between Dell and roughly $95 billion of AI server orders that investors were told cannot be shipped.
Shares fell anyway. Friday’s European close of EUR 781.80 marked a drop of 5.9%, part of a week that cost the stock 15% and left it 29% under its record. The Philadelphia Semiconductor Index also lost ground for an eighth session running.
Where the bulls see backlog, Michael Burry sees a top. Puts expiring June 2027 are his vehicle for arguing that today’s scarcity breaks before consensus expects, once all the new capacity now being built starts producing.
Labor trouble adds a second front. Turnout for the strike ballot at Taoyuan reached 1,994 in favor, and the union’s demand centers on a 15 percent slice of operating profit. Schedules and strike politics share the same calendar, and conciliation opens next Thursday.
A full order book promises revenue, not margin. What memory costs once every competitor’s new fab is online remains unanswered.
