Micron Technology posted fiscal Q3 2026 revenue of $41.46 billion, a 346% jump from $9.3 billion a year earlier. Micron’s non-GAAP gross margin hit 84.9%, comfortably clearing the 75% that Nvidia reported for its own most recent quarter.
Nvidia’s component bill tells the real story
Nvidia beat revenue expectations with $96.2 billion in quarterly sales, yet had to trim gross margin guidance to 74%. In a single quarter, Nvidia’s component supply commitments ballooned from $119 billion to $279 billion.
Nvidia expects fiscal 2028 revenue growth of roughly 70%, but memory supply shortages are already forcing server price increases north of 15%.
Micron’s leverage keeps growing
CEO Sanjay Mehrotra has confirmed that Micron can currently satisfy only 50% to 67% of customer demand for HBM. The company has locked in $100 billion in multi-year contracts, creating revenue floors and pricing guarantees. Micron’s HBM4 shipments have already crossed $1 billion and are ramping at twice the pace of the previous generation. Supply constraints are expected to persist beyond 2027, with only gradual improvements potentially arriving in 2028.
The power dynamic has flipped
Micron’s 84.9% gross margin doesn’t just beat Nvidia’s 75%. It also edges past Meta’s roughly 82%, putting a memory supplier ahead of both the chip designer and the end customer in profitability terms.
Nvidia’s strategy of nearly doubling supply commitments in a single quarter signals that Jensen Huang’s team is willing to pay to stay ahead, and that willingness to pay is precisely what keeps Micron’s margins elevated.
What investors should watch
The $100 billion contract backlog provides unusual visibility for a memory company. Multi-year take-or-pay agreements convert Micron from a commodity supplier into something closer to a subscription business with hardware delivery obligations.
For Nvidia, server prices rising over 15% due to memory costs could eventually slow order growth, particularly from smaller cloud providers and enterprise buyers who lack the deep pockets of hyperscalers like Microsoft, Google, and Amazon.