Micron benefits from Nvidia’s margin pressure as memory demand reshapes AI supply chain

Micron Technology posted fiscal Q3 2026 revenue of $41.46 billion, a 346% jump from $9.3 billion a year earlier. Micron’s non-GAAP gross margin hit 84.9%, comfortably clearing the 75% that Nvidia reported for its own most recent quarter. Nvidia’s component bill tells the real story Nvidia beat revenue expectations with $96.2 billion in quarterly sales, yet had to trim gross margin guidance to 74%. In a single quarter, Nvidia’s component supply commitments ballooned from $119 billion to $279 billion. Nvidia expects fiscal 2028 revenue growth of roughly 70%, but memory supply shortages are already forcing server price increases north of 15%. Micron’s leverage keeps growing CEO Sanjay Mehrotra has confirmed that Micron can currently satisfy only 50% to 67% of customer demand for HBM. The company has locked in $100 billion in multi-year contracts, creating revenue floors and pricing guarantees. Micron’s HBM4 shipments have already crossed $1 billion and are ramping at twice the pace of the previous generation. Supply constraints are expected to persist beyond 2027, with only gradual improvements potentially arriving in 2028. The power dynamic has flipped Micron’s 84.9% gross margin doe...