Micron's Data Center Gross Margin Hit 87% Last Quarter. Here's What It Means for the Stock.

Micron Technology reported record data center gross margins of 87% in Q3 FY2026, driven by AI-driven demand for high-bandwidth memory chips. While the company posted record revenue of $41.5 billion and guided for continued strength, the stock trades at less than 7x forward earnings, suggesting investors remain skeptical about the durability of these margins given the historically cyclical nature of the memory chip business.