Micron Sees 86% Gross Margin, Faces AI Chip Demand Uncertainty
MU•MU•MU•MU•Micron reported blowout earnings and forecasts an 86% gross margin next year, driving its stock up 300% year to date off March lows despite a recent pullback. AI chip peers slumped after OpenAI delayed its IPO to next year, potentially dampening near-term memory chip demand amid $1.4 trillion in data center commitments.
Micron delivered a blowout quarterly report, and management forecasted an 86% gross margin for the next fiscal year. This strong profitability outlook has underpinned a 300% rally in the stock year to date from March lows, although recent profit-taking pushed shares lower from new highs.
Following news that OpenAI will delay its IPO until next year, AI chip names – including Micron’s peers – saw significant sell-offs. With OpenAI responsible for part of a $1.4 trillion data center spending pipeline, the pushback may slow near-term memory chip purchases, introducing fresh uncertainty into Micron’s end-market demand.
