Micron's Gross Margin Surpasses NVIDIA and Meta, Ranking First Among Major U.S. Tech Companies

BlockBeats News, June 25th - According to CNBC, driven by AI demand leading to a continuous increase in storage prices, Micron Technology's (MU) profit margin has reached a historic high, surpassing major US tech companies such as Nvidia and Meta to take the top spot among US tech giants. Micron announced in its Wednesday earnings report that its gross margin for the third quarter of the fiscal year rose to 84.9%, up from the previous quarter's 74.9% and significantly higher than the 39% from the same period last year. This level surpasses Meta's latest quarter gross margin of 81.9% and Nvidia's 75% gross margin. Micron CFO Mark Murphy stated during the earnings call, "The third-quarter gross margin has more than doubled from the same period last year, setting a new record for the company."

Micron's revenue for the third quarter reached $41.46 billion, an increase of over $20 billion from the previous quarter, which had already marked the highest revenue in the company's 48-year history. The net profit reached $28.24 billion, representing a growth of over 100% from the previous quarter's high. As of Wednesday's close, Micron's stock price has surged over 700% in the past year, with a market value exceeding $1 trillion, and an additional 14% increase in after-hours trading.

Nvidia, AMD, and Google all rely on Micron's high-bandwidth memory for AI processors and related systems. The storage shortage has driven up prices, leading to higher storage component costs for consumer electronics manufacturers such as Apple. Apple CEO Tim Cook previously stated that the iPhone would have to increase in price to address what he called an "unsustainable" storage situation.

Micron CEO Sanjay Mehrotra mentioned that the company is entering into long-term strategic customer agreements, some of which include price ranges that allow Micron to achieve a robust margin much higher than any peak quarter gross margin in the past. Micron expects the gross margin for the fourth quarter of the fiscal year to be around 86% and anticipates that the tight market conditions will persist beyond 2027.