The Shocking Similarity Between Micron and Nvidia as AI Turns Memory Into a Goldmine
AI-summarised brief · reviewed before publication
Micron Technology has seen a significant increase in gross margins, reaching 74.4% in fiscal Q2 2026, due to high demand for high-bandwidth memory used in AI applications. This shift has turned memory from a cyclical commodity into a high-margin bottleneck, with Micron benefiting from its position as one of three companies producing high-bandwidth memory at scale. The company's margins now resemble those of software businesses, with a rich product mix and pricing power.
💡 Why It Matters
- · Micron's newfound profitability hinges on its ability to supply high-bandwidth memory to hyperscalers building out AI infrastructure.
- · With the Big 4 hyperscalers planning $710 billion in capital expenditures, demand for this memory is likely to remain elevated, driving Micron's growth.