By Rich Duprey
Publication Date: 2026-05-02 14:51:00
Quick Read
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.
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.
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…
