Micron Just Delivered Great News for Intel, AMD, Arm, and Qualcomm Stock Investors

Yahoo Finance ·

Micron ( MU 3.83% ) just faced the latest litmus test in the AI boom and passed with flying colors, with revenue jumping 346% and earnings per share growing by more than tenfold. The third-quarter report makes clear that the memory shortage is only getting more severe as Micron's gross margin jumped to 85%, and it reported an operating margin of 80%, meaning it kept 80% of its revenue as before-tax profit. For the rest of the tech industry, the implications of the memory shortage, which Micron said would continue through at least 2028, are mixed. Apple stock fell 5% on Thursday after the company announced price hikes on some laptops and tablets to absorb higher costs for memory and storage, and the hyperscalers that make up Micron's data center customer base are also facing higher prices.

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Micron's Q3 revenue surged 346% and EPS increased more than tenfold, highlighting a structural shortage in the memory market. The company reported a gross margin of 85% and an operating margin of 80%, and said the memory shortage is expected to continue at least through 2028. The demand surge is driven by the AI boom and data-center expansion, which creates huge revenue opportunities for memory and storage suppliers while increasing cost burdens for laptop, tablet, and smartphone manufacturers and hyperscalers, likely pressuring margins and consumer sentiment in the near term. The market expects prolonged memory strength to lead to related investment and supply-chain reconfiguration.

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