Memory crisis: Micron's revenue equals AMD and Intel combined
Micron posts record results across the board. Revenue triples. No end in sight.
(Image: Micron)
Memory manufacturer Micron is the first of three global market leaders to publish business figures for the beginning of 2026. They show how significant the current memory crisis is and how enormously memory manufacturers are profiting from it.
From early December 2025 to the end of February 2026, Micron generated around 23.9 billion US dollars in revenue. This period covers Micron's second fiscal quarter of 2026. In just three months, revenue has grown by 75 percent compared to the previous year's period, and by 196 percent compared to the same period last year. Micron's revenue is now on par with AMD and Intel combined.
The growth in net profit is even greater at 13.8 billion US dollars, as Micron is increasing prices and thus maximizing margins. A year earlier, the company made a net profit of 1.6 billion US dollars. The gross margin increased from 56 to 74 percent in this period, and the operating margin from 45 to 68 percent. Micron considers this a record.
End consumers hit hardest
Although AI data centers have triggered the memory crisis, Micron is seeing the largest growth in NAND flash (SSD storage) and DRAM (RAM) for desktop PCs, notebooks, smartphones, and other client devices. In one year, revenue has increased from 2.2 billion to 7.7 billion US dollars. The operating margin has exploded from one to 76 percent.
This makes client memory Micron's most lucrative business. This is due to the particularly high price increases that the manufacturer can push through there. In just one quarter, revenue increased by 81 percent – even though the volume of memory sold decreased due to production adjustments. This means prices have risen by over 81 percent.
Micron's revenue broken down by division. "Cloud Memory" includes DRAM and NAND flash for cloud and AI data centers. "Core Data Center" refers to traditional servers without an AI focus.
(Image: Micron)
AI and cloud data centers recently generated a good 7.7 billion US dollars in revenue, while traditional servers generated 5.7 billion. Automotive and embedded accounted for 2.7 billion US dollars. All divisions recorded significant growth.
DRAM for RAM remains Micron's core business. 18.8 billion US dollars, or 79 percent of revenue, was attributable to this memory type. NAND flash for SSDs accounted for 5 billion US dollars, or 21 percent.
Memory remains scarce
Both memory types will remain scarce for the foreseeable future. Micron does not expect any easing in the calendar year 2026. DRAM and NAND flash are expected to remain scarce beyond that. The situation looks particularly bleak for SSDs: “We are currently finding that demand for NAND memory will significantly exceed our available supply for the foreseeable future.”
Long-term agreements with buyers underscore that the industry does not expect an AI bubble to burst: Micron has signed its first five-year “strategic customer agreement.” Unlike previous long-term framework agreements, this one is said to include “specific commitments.”
Meanwhile, investments in new manufacturing capacities are increasing. Micron plans to invest over 25 billion US dollars in fiscal year 2026 (September 2025 to end of August 2026). In the following fiscal year 2027, spending is expected to increase by at least 10 billion US dollars, mainly for additional manufacturing capacity. However, previous investments will only impact production volume at the earliest by the end of 2027, as the construction of new semiconductor plants takes time.
Micron confirms estimates that manufacturing capacity for DRAM and NAND flash is expected to increase by a good 20 percent across all manufacturers in the calendar year 2026. This increase comes from newer manufacturing processes that allow for more or more densely packed memory chips on a wafer.
Even more profit from the memory crisis
In the current quarter, Micron expects revenue of 33.5 billion US dollars (+/- 750 million). This corresponds to 40 percent sequential growth. The gross margin is expected to rise to 81 percent. This means prices continue to rise significantly.
Micron's stock has fallen by about seven percent since the business figures were announced. However, this is likely due to the overall market situation: almost all tech companies are currently in the red, partly due to the Iran conflict. Furthermore, analysts do not find the projected margin high enough.
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