Micron Technology is having trouble finding its footing. The memory-chip company was falling again early Wednesday but Elon Musk is a fan of its strategy.

Micron shares were down 1.43% at $939.43 in premarket trading. The stock is down 12% over the past five trading sessions as fears of Chinese advances in memory chips have added to pressure on the wider market from rising bond yields.

Still, the stock is up more than 400% in the past 12 months. Micron is enjoying booming profits and revenue from the shortage of memory to power artificial-intelligence demand. And Tesla and SpaceX CEO Musk argues it has set itself up for success in the long run.

"Micron has been reasonable regarding future memory prices, while others have been extortionate, which is something today's customers won't forget," Musk posted on social-media platform X late on Tuesday. "Micron is making [...] the smart move for long-term customer loyalty."

Although Musk didn't identify which other companies he was referring to, the global memory-chip market is dominated by Micron and its South Korean peers Samsung Electronics and SK Hynix.

When it comes to memory companies, the entire discussion is dominated by whether Micron and its peers are just enjoying a cyclical peak in earnings or can sustain it over the long term. Micron reported an 87% gross margin in its most recent quarterly earnings. That's a margin which is unlikely to last forever, however the company has locked in 26 long-term supply deals which should guarantee relatively high prices through 2030.

Musk is a good friend to have. As his Terafab chip operation ramps up -- which will serve Tesla and SpaceX -- Micron might benefit from his good will in the coming years.