Micron's Record Quarter Hides a Dangerous Problem

Micron (MU) reported the greatest quarter in its history, with revenue up 345% year over year to $41.5B and gross margin hitting 84%, driven largely by high-bandwidth memory (HBM) demand tied to AI and Nvidia supply chains. The discussion highlights that volumes aren’t rising much yet; instead, MU and peers (SK Hynix, Samsung) are benefiting from major pricing power as capacity shifts from traditional DRAM to HBM, tightening DRAM supply and raising costs across consumer electronics. Apple is cited as raising prices ($100–$500, including a $500 Mac Studio increase), while stocks of major buyers like Apple, Microsoft, Nvidia, Amazon, and Alphabet fell. Longer term, speakers debate sustainability, warning commodity dynamics and new capacity—potentially including Chinese competitors—could normalize prices and pressure MU, while opportunities may emerge in pressured buyers like Nintendo and broader businesses like Alphabet. Check out fool.com/epic-50 ------------------------------------------------------------------------ This video is brought to you by The Motley Fool. Visit https://fool.com/Invest to get access to this special offer. The Motley Fool Stock Advisor returns are 995% as of 06/02/2026 and measured against the S&P 500 returns of 212% as of 06/02/2026. Past performance is not an indicator of future results. All investing involves a risk of loss. Individual investment results may vary, not all Motley Fool Stock Advisor picks have performed as well. ------------------------------------------------------------------------ 00:00 Micron Record Quarter 00:42 Pricing Power Shock 01:56 HBM Fuels AI Boom 02:49 DRAM Supply Squeeze 04:47 Sustainability And Cycles 07:35 Apple Price Hikes Fallout 10:28 Micron Stock Outlook 12:56 Commoditization Risks 14:40 Where To Find Value 17:27 Wrap Up And Comments