Micron could surpass Nvidia as top driver of S&P 500 profit growth

Micron Technology, the Idaho-based DRAM and NAND manufacturer, already surpassed Nvidia as the largest contributor to S&P 500 earnings growth in Q2 2026, posting year-over-year profit expansion north of 1,200%. The numbers behind the surge Micron’s fiscal Q3 2026 results were staggering by any standard. Revenue hit $41.46 billion, up 346% from the same quarter a year earlier. Net income landed at $28.24 billion. Gross margins reached 84.9%. For fiscal Q4 2026, the company is forecasting roughly $50 billion in revenue with an 86% gross margin. Looking further ahead, analysts project Micron’s operating income could climb from approximately $130.4 billion in 2026 to $200.8 billion in 2027, a 54% jump. That would rank the company third in total contributions to S&P 500 profit growth, trailing only Nvidia and Alphabet. Together, Micron and Nvidia accounted for up to 40% of the S&P 500 index’s earnings growth in the most recent quarter. Why memory became the bottleneck Micron has locked in long-term supply agreements with key customers, including Nvidia itself. Industry-wide DRAM and NAND growth rates are guided in the low-to-mid 20s percent and roughly 20% respectively for c...