| Metric | Q3 FY2026 | YoY |
|---|---|---|
| Revenue | $41.46B | +346% |
| Gross Margin | 84.9% | 39% → 84.9% |
| EPS | $25.11 | Beat by 24% |
| Q4 Guidance | ~$50B | vs $43.6B consensus |
| Data Center Revenue | $11.5B | +700% |
| Cloud Memory Revenue | $13.77B | +300% |
| Mobile & Client | $11.52B | +250% |
| Auto & Embedded | $4.63B | +400% |
Micron's 84.9% gross margin now surpasses Nvidia — making it the highest-margin company in tech. The CEO confirmed supply shortages will persist into 2028. Sixteen long-term agreements worth ~$100B have been signed, locking in these pricing dynamics for 3–5 years.
Every dollar of Micron's record profit is being extracted from a customer's P&L. The question: who's bleeding, and who can pass it on?
Dell (DELL) — Net margin 5.23% vs Micron's 84.9% gross. Spot DRAM up 5.5× in 6 months. Already hiked PC prices 15–20%. Morgan Stanley downgraded to Underweight on memory cost exposure. Risk of demand destruction.
HP Inc (HPQ) — CFO disclosed margin compression. Same 15–20% price hikes, weaker enterprise mix.
Lenovo (0992.HK) — Same cost pressure, less pricing power in China.
Xiaomi (1810.HK) — Thin hardware margins (<5%), memory is a major BOM line. Price-sensitive consumers limit pass-through. Smartphones cost 14% more in 2026 per IDC.
MSFT, GOOGL, AMZN, META — $25B+ combined memory buyers, but explosive AI revenue growth offsets. This is the cost of admission to the AI race. Not tradeable on this thesis alone.
Nvidia (NVDA) — HBM is pricey but Nvidia's own margins give headroom. GPU pricing power lets it pass costs through. Symbiotic relationship with Micron.
Apple (AAPL) — Secured LTAs through Q1 2026. "Reportedly less affected than competitors." Premium pricing power. Noise for Apple.
| Pair | Logic |
|---|---|
| Long MU / Short DELL | Micron extracts rent, Dell pays it. MU 84.9% margin vs DELL 5.2% net margin. |
| Long MU / Short 0992.HK | Lenovo has even less pricing power than Dell. |
| Long Samsung / Short Xiaomi | Samsung benefits from memory pricing, Xiaomi pays it. |
The memory shortage is structural — CEO Mehrotra said supply won't normalize until 2028. This is a multi-year margin transfer from hardware OEMs to memory manufacturers.