tech
Micron is Tech's New Margin King as Memory Crisis Pushes Company Past Nvidia and Meta
Micron said in its earnings report that its gross margin jumped to 84.9% from 39% a year ago.
TL;DR
- Micron reported a gross margin of 84.9%, a company record and the highest among major U.S. tech companies.
- Revenue in the fiscal third quarter reached $41.46 billion, and net income increased over 100% from the previous quarter.
- High demand for memory from AI development is driving price increases, impacting companies like Nvidia, AMD, Google, and Apple.
- Micron is establishing long-term strategic customer agreements (SCAs) with price floors to ensure sustained high margins.
- The company projects a fiscal fourth-quarter gross margin of approximately 86% and anticipates a tight market until at least 2027.