Micron is selling memory before it can make it

Micron did $41.46B in revenue last quarter. The quarter before was $23.86B. Non-GAAP gross margin hit 84.9%, and they’re guiding for about 86% next quarter. That margin is nuts for a memory company. [Source: Micron fiscal Q3 2026](https://preview.redd.it/jwn17srij6kh1.png?width=1456&format=png&auto=webp&s=1888ac7ebe286dbc46245cdf4cf722683b75cc1a) Micron says HBM3E takes about three times the wafer capacity of DDR5 for the same number of bits. HBM demand is soaking up capacity that would otherwise go to regular server, PC, phone memory. They’ve also signed 16 supply agreements covering about 20% of DRAM volume and a third of NAND through 2030. The agreements include binding purchase commitments. The old memory cycle can still bite here. New supply will come online eventually. If demand cools around the same time, prices get hit. I’d want to see that 86% margin guide hold next quarter.