Elon Musk praised Micron Technology (MU) on Tuesday, stating that the memory maker's pricing strategy is reasonable compared to competitors who have been extortionate. Musk highlighted this approach as a smart move for securing long-term customer loyalty, noting that customers will remember such fairness. This endorsement came after MU shares had plunged over 14% in four sessions amid broader semiconductor sell-offs driven by concerns over AI investment returns. JPMorgan analyst Nicholas Mugalli provided bullish data supporting the memory sector's outlook, noting that Micron has secured long-term supply agreements covering more than 35% of its revenue through 2030. The company holds a $150 billion contracted backlog with over 75% of its fiscal 2027 output already sold. JPMorgan expects memory supply shortages to persist through 2028 as demand for high-bandwidth memory (HBM) from AI infrastructure continues to outstrip supply. Despite the positive sentiment from Musk and strong fundamentals, memory stocks faced headwinds as prices for DRAM, NAND flash, and HBM surged 80%-90% in Q1 2026. However, fresh competition from Chinese chipmaker ChangXin Memory Technologies (CXMT) has raised concerns that additional supply could eventually ease shortages. Retail sentiment on Stocktwits shifted to 'bearish' despite some traders viewing Musk's comments as a positive endorsement for the stock. MU shares rose 0.7% in overnight trading, offering a modest reprieve after significant declines. The company benefits from its memory technology being embedded in Nvidia GPUs used in major AI data centers like SpaceX's Colossus complex. While direct deals between Micron and Musk's companies have not been announced, the executive named Micron as an existing supplier alongside Samsung and TSMC for his Terafab project.