Why Micron Stock Is Getting a Boost From Nvidia's Memory Price Warning -- Barrons.com
Dow Jones2026/08/27 12:29By Adam Clark
Nvidia thinks the price of memory chips is outrageous-and it's still willing to pay it. That's great news for Micron Technology and its peers.
Micron shares were up 4.1% in premarket trading Thursday. SK Hynix's American depositary receipts were gaining 4.1%.
Apart from confirming that the artificial-intelligence boom has a lot further to run, Nvidia's earnings on Wednesday came with one big message: higher memory prices are here to stay. The chip maker's executives said "extreme pricing conditions in memory" would hit its gross margins.
"The magnitude of the price increase has exceeded our prior expectations and are headed even higher into next year," Chief Financial Officer Colette Kress said during the earnings call.
Normally a company's customers flagging extreme costs might spell trouble for the supplier but Nvidia said it would pay even higher prices next year. And Nvidia CEO Jensen Huang didn't suggest he was ready to walk away, only noting that the company was working with all three major suppliers-Micron and its South Korean peers Samsung Electronics and SK Hynix-to increase capacity.
That should soothe any concerns Nvidia is looking to reduce its reliance on Micron and its peers' hardware. There have been multiple reports Nvidia is looking at downgrading the amount of memory packaged with some variants of its next-generation Rubin chips, the latest coming from semiconductor and AI research firm SemiAnalysis this week.
But with Nvidia having made commitments to suppliers worth $279 billion as of its latest quarter-more than doubling from $119 billion the previous quarter-Micron shareholders can be confident plenty of that money is heading their way.
"Memory accounts for well over half of [Nvidia's] total supply allocation, a positive indicator that despite news of de-specing, demand for memory remains well ahead of supply-good news for SK Hynix and Micron," wrote William Blair analyst Sebastien Naji in a research note.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
August 27, 2026 08:29 ET (12:29 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Apple (AAPL.US) nears a 5 trillion USD market capitalization, targeting Nvidia: the 1,999 USD foldable screen Duo becomes a critical battle.
Apple (AAPL.US) has unveiled its new iPhone, which could be the ticket for this consumer tech giant to reclaim its position as the most valuable company by market capitalization. The company is not far from reaching this goal.
Facebook and Instagram under Meta (META.US) experienced outages affecting thousands of users in the US last Sunday.
Thousands of users in the United States were unable to access Meta’s social platforms Facebook and Instagram last Sunday.
The Nasdaq 100 rebalancing will take effect before the U.S. stock market opens on Monday, SpaceX (SPCX.US) weight significantly rises to 2.82%.
The Nasdaq 100 Index quarterly rebalancing will take effect before the US stock market opens on September 21 (Monday). The main change is that SpaceX (SPCX.US) will see its index weighting significantly increase from about 1.28% to 2.82%.
WTI falls to near $93.50 as Middle East diplomacy hopes ease supply fears
Crypto prices
More
