Micron is tech's new margin king as memory crisis pushes company past Nvidia and Meta - CNBC

Micron Technology has achieved historic profit margins amid a global memory shortage, posting a gross margin of 84.9%, surpassing major U.S. tech firms like Meta and NVIDIA. This surge reflects strong... Read original →

Micron’s 84.9% gross margin isn’t a cyclical blip—it’s a structural shift driven by AI’s memory-bound architecture. Surging HBM demand has locked NVIDIA, AMD, and cloud hyperscalers into long-term agreements, transforming DRAM from a cost center into a performance bottleneck and granting Micron unprecedented pricing power. Technically, this accelerates co-design between sub-3nm logic and EUV-enabled 3D-stacked memory, forcing TSMC and Samsung to reallocate SCA packaging capacity. Geopolitically, while U.S. CHIPS Act subsidies ease CapEx burdens, restricted mature-node expansions in Taiwan, China and mainland China may prolong shortages. Samsung could retaliate with aggressive pricing, while SK Hynix may deepen HBM4 co-development with AMD. Over the next 18 months, memory will evolve from a cyclical commodity into critical AI infrastructure—permanently elevating its margin floor. OEMs ignoring this strategic pivot risk severe cost-structure imbalances.