Micron Technology's (MU) fiscal Q3 results beat Wall Street expectations and guidance was also above consensus, but the surprise was the level of detail that the company was able to provide for its forward contracts, Wedbush said in a note Thursday.

The new contracts provide "unprecedented revenue, margin and earnings certainty for an elongated period," the note said.

The investment firm highlighted that Micron indicated having 16 strategic customer agreements in place, representing 20% of its DRAM output and one-third of its NAND sales.

Wedbush also noted that Micron indicated that when it has completed the negotiation of the strategic customer agreements across its customer base, the deals may represent 50% or more of its total output.

Micron's largest contracts stretch through 2030 and include price ceilings and floors, the note said, adding that the company's management indicated that "the pricing floors are set at levels that should provide [Micron] with margins above what the company realized during prior cyclical peaks."

Wedbush reiterated Micron's outperform rating and lifted the company's price target to $1,400 from $1,300.

Micron shares rose over 10% in Thursday trading.

Price: 1159.73, Change: +111.81, Percent Change: +10.67