Jim Cramer’s trust starts a small Micron position
CNBC says Jim Cramer’s Charitable Trust bought into Micron, citing AI memory demand and customer contracts while flagging cyclical risk.
By Maya Okafor · Markets Writer
· 3 min read
Jim Cramer’s Micron position is starting small. CNBC reported that Jim Cramer’s Charitable Trust planned to buy 25 shares of Micron Technology at about $872 a share, leaving the memory-chip maker at a 0.5% weighting in the portfolio after the trade.
For individual investors, the important distinction is that this is a reported portfolio move and thesis from CNBC’s Investing Club, not a company announcement or a recommendation. CNBC said the trust had recently added Micron to its own “Bullpen” terminology before calling the stock into the portfolio, and that the modest starting size reflected the shares’ volatility.
The trust set a $1,100-per-share price target, according to CNBC. That target is the club’s view, not an independently established forecast.
Why did Jim Cramer’s trust start a Micron position?
CNBC’s case centers on a shortage of memory chips as companies build systems for artificial intelligence. Micron makes DRAM and NAND, two central types of semiconductor memory. NAND stores data over the longer term, similar to flash storage. DRAM is working memory, the component that helps a computer actively process information. High-bandwidth memory, or HBM, is a specialized kind of DRAM used in modern AI workloads.
Micron said in its fiscal third-quarter 2026 prepared remarks that industry demand for both DRAM and NAND was significantly ahead of supply. The company expects tight market conditions to extend beyond calendar 2027, driven by AI demand and supply constraints. Those are forward-looking company expectations, and Micron cautioned that results could differ materially from its assumptions.
CNBC said the imbalance has supported higher pricing and strong margins at Micron. Still, memory has a history of boom-and-bust cycles, CNBC noted, and investors remain skeptical that the current period will break from that pattern. That cyclicality is the core risk identified in the report.
What are Micron’s strategic customer agreements?
Micron has disclosed 16 strategic customer agreements, or SCAs, that it says are intended to change its business model. The agreements are take-or-pay contracts, meaning customers make binding commitments to purchase specified volumes over the contract period.
According to Micron, the agreements generally run from calendar 2026 through 2030, while automotive agreements generally run three years. The 16 signed deals represented roughly 20% of Micron’s DRAM volume and one-third of its NAND volume during the covered period. Micron said it expected half or more of its revenue to be covered by SCAs once all planned agreements were completed.
Its largest agreements generally include a floor price and a ceiling price for existing products, with the ceiling based on the then-current calendar-second-quarter market price. Some agreements instead use fixed pricing or leave pricing subject to market conditions. CNBC cited those terms as part of Micron’s effort to address concerns about the memory industry’s historic cyclicality.
This story draws on original reporting from CNBC.
