"Micron's gross margin swung from roughly -33% three years ago to 75% today. That reversal reflects both pricing power and a rich product mix tilted toward premium HBM."
"AI workloads demand high-bandwidth memory (HBM) that delivers massive data throughput at lightning speed. Standard DRAM no longer suffices for the most advanced training and inference tasks."
"Only three companies produce HBM at scale globally: Samsung, SK Hynix, and Micron. At the end of 2025, SK Hynix led with about 57% share, with Samsung and Micron virtually tied at 22% and 21%, respectively."
Micron Technology has shifted from experiencing negative gross margins due to oversupply to achieving 74.4% gross margins with record revenue of $23.86 billion. This change reflects the growing demand for high-bandwidth memory (HBM) essential for AI workloads. Only three companies produce HBM at scale, with Micron holding a significant market position alongside Samsung and SK Hynix. The demand for HBM is driven by the need for high data throughput in advanced AI training and inference tasks, making it a critical component in the AI technology stack.
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