Micron's Data Center Gross Margin Hit 87% Last Quarter. Here's What It Means for the Stock.
A memory chipmaker just posted a software-like margin. The real question is how long it can last.
Overview
Micron Technology (NASDAQ: MU) just reported a gross margin most software companies would envy, and it came from a business that stamps out physical memory chips. In its core data center unit, gross margin reached 87% last quarter.
For a company long treated as the poster child for commodity boom-and-bust cycles, that number is stunning. It is also the clearest sign yet that memory has become one of the scarcest, most valuable inputs in artificial intelligence (AI).
Details
While the 87% margin is the headline, the more important question for the stock is how durable that pricing power is, and, at today's price, whether the market believes it can last at all.
Source
Originally published at www.fool.com.