Micron Reports 90% Consumer Margins as Memory Shortage Extends to 2028

Micron says its consumer margin has reached 90% as memory prices rise, and expects shortages to persist through at least 2027 and 2028. Some large AI customers are seeking contract extensions beyond 2030.

Gamers Nexus has reported:

Micron’s consumer margin has climbed to 90%, while the company expects memory shortages to continue through at least 2027 and 2028. In its latest earnings report, it also said several customers, including large AI hyperscalers, want to extend contracts beyond 2030.

The margin increase comes despite Micron’s decision to close Crucial, its direct-to-consumer line of system components, in December of last year. The company continues to sell consumer parts, and their rising prices and margins point to substantial earnings from that business even after Crucial’s closure.

The video examines Micron’s financial results and the demand for memory, including high-bandwidth memory (HBM). Its timeline begins with a section on billions in taxpayer money at 00:00, followed by Micron’s alignment with NVIDIA at 02:10 and the Crucial discussion at 04:24. HBM demand is covered at 05:39, followed by a segment about a trillionaire laughing at RAM prices at 06:42.

The video turns to the shortage outlook at 08:13, then provides a financial earnings deep dive at 11:44. Micron’s consumer business margin and growth are covered at 14:54, with long-term agreements discussed at 17:49. A section at 21:27 addresses bookings for 2027 and 2028, and the video concludes at 25:23.

The description promotes a “MICROSLOP” parody T-shirt through the Gamers Nexus store and links to the channel’s DRAM Cartel documentary and a recent RAM and memory pricing update. It says viewers can support the work through the store or by becoming a Patron, and asks viewers to like, comment and subscribe.

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Gamers Nexus lists Twitter, Facebook and its website as places to follow for gaming and hardware updates. The video credits Steve Burke as host and writer, Tim Phetdara for editing, and Ben Benson for writing.