Micron Overtakes Nvidia as AI Winner With Revenue Up 4X, Gross Margin at Record 85%

According to Barron's, Micron (MU) has overtaken Nvidia in its latest quarter as the biggest beneficiary of AI infrastructure spending, with revenue quadrupling year-over-year and gross margin reaching 85%, a historic high. The company expects memory supply constraints to persist for at least another 18 months.

However, intensifying competition poses risks. OpenAI this week announced a partnership with Broadcom to develop its own AI chip, while Qualcomm signed AI chip supply deals with Microsoft and Meta. Micron has moved to lock in customer relationships through long-term supply agreements with fixed pricing bands, though tech giants facing shareholder pressure to control AI capital spending may seek to reduce memory procurement costs.