Micron Technology hits record 80% operating margin amid AI demand

Micron Technology has reported a record operating margin exceeding 80%, driven by unprecedented demand for memory chips from AI hyperscalers building out data centers. This surge in demand for high-bandwidth memory (HBM) is consuming available capacity and driving up prices, as AI-related needs divert wafer capacity away from conventional memory.

While the company faces a highly cyclical industry where prices are dictated by supply and demand, the current upswing is noted as uniquely large. New production facilities are expected to come online between mid-2027 and 2028, which may influence the balance of supply and demand in the coming years.

Institutional investors have shown significant activity in Micron stock. Recent filings indicate various movements: NS Partners Ltd increased its position by nearly 50%, and State Street Corp increased its holdings by 2.1%. Conversely, Ferguson Wellman Capital Management Inc. reduced its stake by 12.1%. Overall, institutional investors and hedge funds own approximately 80.84% of the company's stock.