The Shocking Similarity Between Micron and Nvidia as AI Turns Memory Into a Goldmine
Micron Technology's gross margins surged to 74.4% on record revenue of $23.86 billion in fiscal Q2 2026, driven by demand for high-bandwidth memory (HBM) in AI applications. The company's HBM production positions it to capture a growing market share as hyperscalers build out AI infrastructure.
Micron Technology has transformed from a cyclical commodity player to a high-margin beneficiary of AI-driven demand for high-bandwidth memory (HBM). In fiscal Q2 2026, Micron reported gross margins of 74.4% on record revenue of $23.86 billion, comparable to Nvidia's recent levels. The demand for HBM is driven by AI workloads that require massive data throughput at high speeds. Only three companies produce HBM at scale: Samsung, SK Hynix, and Micron, with Micron having ramped production and qualified its HBM with major customers. The Big 4 hyperscalers - Amazon, Microsoft, Alphabet, and Meta Platforms - plan $710 billion in combined capital expenditures this year, largely for AI infrastructure, which will drive demand for HBM. Micron's valuation is around 5x forward P/E, with shares recently crossing $500 for the first time.
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