By Rich Duprey
Publication Date: 2026-05-02 14:51:00
Quick Read
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Micron (MU) posted gross margins of 74.4% on record revenue of $23.86B in fiscal Q2 2026, matching Nvidia’s levels and reversing from -33% margins three years ago, driven by dominance in high-bandwidth memory (HBM) where it holds 21% global share alongside SK Hynix (57%) and Samsung (22%). Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOGL), and Meta Platforms (META) plan roughly $710B in combined capital expenditures this year, largely for AI infrastructure that demands HBM chips.
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Micron transformed from a cyclical commodity producer into a structural profit center as AI workloads demand high-bandwidth memory that cannot be easily substituted, allowing the company to command pricing power comparable to software businesses while hyperscalers race to build out infrastructure.
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The analyst who called NVIDIA in 2010 just named his top 10 stocks and Micron Technology wasn’t one of them. Get them here FREE.
Nvidia (NASDAQ:NVDA) led the first wave of AI enthusiasm with its powerful GPUs. Investors piled in as data centers raced to secure chips that could train and run ever-larger models. Yet as AI expands, the opportunity spreads beyond GPUs into unexpected corners of the stack.
Memory — long viewed as a cyclical commodity prone to booms and busts — has become a high-margin bottleneck, and Micron Technology (NYSE:MU) stands out as one of the clearest beneficiaries. Here’s what changed.
From Cyclical Loser to High-Margin Player
Memory…
