DRAM prices surge 17% after Micron Q2 beat, heightening GPU costs
Micron delivered Q2 EPS of $12.20 on $23.86 billion revenue, surpassing $9.00 EPS and $19.7 billion estimates, and issued Q3 guidance above Street forecasts. Rising AI-driven demand has pushed DRAM prices up 17% and smartphone memory prices by 13%, tightening supply and escalating GPU component costs for Nvidia.
1. Micron’s Q2 Outperformance and Guidance
Micron reported Q2 EPS of $12.20 on revenue of $23.86 billion, beating analyst expectations of $9.00 EPS and $19.7 billion in revenue, and provided Q3 guidance that exceeds consensus estimates.
2. Price Inflation in DRAM and Smartphone Memory
The surge in AI training and inferencing has driven DRAM prices up 17% and smartphone memory prices by 13%, while Gartner forecasts a 10.4% drop in PC shipments and an 8.4% decline in smartphone shipments in 2026 due to constrained supply.
3. Impact on Nvidia’s GPU Production Costs
Tightened DRAM and HBM supply is increasing component costs for Nvidia’s data center GPUs, which may pressure profit margins or force the company to adjust product pricing to maintain throughput in AI workloads.