AI: Micron profit surges 1,400% amid global memory chip shortage - Peoples Gazette Nigeria

Micron Technology reported a 1,400% surge in quarterly profit amid global demand for memory chips used in AI systems and data centers. The company's revenue rose to $28.2 billion, significantly exceed... Read original →

Micron’s 1,400% profit surge stems from structural scarcity in high-bandwidth memory (HBM), driven by AI’s insatiable demand for compute-density. Technically, HBM3E integration with 3nm logic chips has become non-negotiable for NVIDIA and AMD accelerators, locking in supply and raising design barriers across the memory stack. On compliance, U.S. export curbs boost Micron’s pricing power in non-restricted markets short-term but accelerate HBM localization efforts in Taiwan, China and mainland China, heightening geopolitical exposure. Competitively, Samsung and SK Hynix will fast-track CoWoS packaging capacity and may leverage cross-licensing to bypass Micron’s IP moats. Over the next 12–24 months, elevated HBM prices will fuel aggressive capex, yet a supply glut looms by late 2027—current valuations already price in unsustainable optimism.