Micron's Data Center Gross Margin Hit 87% Last Quarter. Here's What It Means for the Stock.
Yahoo Finance ·
Micron Technology ( MU +4.55% ) just reported a gross margin most software companies would envy, and it came from a business that stamps out physical memory chips. In its core data center unit, gross margin reached 87% last quarter. For a company long treated as the poster child for commodity boom-and-bust cycles, that number is stunning. It is also the clearest sign yet that memory has become one of the scarcest, most valuable inputs in artificial intelligence (AI) . While the 87% margin is the headline, the more important question for the stock is how durable that pricing power is, and, at today's price, whether the market believes it can last at all. In its fiscal third quarter of 2026 (the period ended May 28, 2026), Micron's core data center business generated record revenue of $11.5 billion. That was up 103% from the prior quarter, and the unit now accounts for about 28% of the whole company. Gross margin there expanded roughly 12 percentage points in a single quarter to 87%.
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