Micron Outpaces Nvidia in Gross Margin Amid Memory Shortages
Micron Technology (NASDAQ:MU) reported a non-GAAP gross margin of 84.9% for its fiscal third quarter, surpassing NVIDIA Corporation's (NASDAQ:NVDA) adjusted gross margin of 75%. This shift highlights the growing influence of memory suppliers in AI hardware as demand outpaces supply. Micron’s HBM4 production and long-term customer agreements are driving strong pricing power despite cyclical risks. Nvidia faces a near-term decline in margins due to rising memory costs, with guidance projecting adjusted gross margin between 71% and 72%. While Nvidia's revenue doubled year-over-year to $96.2 billion, the company is passing on higher server prices to customers starting early 2027. Micron’s strong financial performance includes quarterly revenue of $41.46 billion and adjusted free cash flow of $18.3 billion. Both companies are attracting increased hedge fund interest, with Micron's holder count rising sharply in Q2.
Topics: AI hardware memory market Micron Nvidia semiconductors