Micron's workers want the AI boom bonuses SK Hynix and Samsung already gave theirs

Nvidia reported strong Q2 earnings with $96.2B revenue, driven by 117% YoY growth in data center sales. However, rising memory costs, particularly high-bandwidth memory, are reducing gross margins, which Nvidia attributes to increased component procurement costs. The company expects margins to decline further before recovering in fiscal 2028. This trend benefits memory suppliers like Micron Technology, as Nvidia's higher memory commitments suggest increased pricing power for suppliers.

Nvidia (NVDA) announced a $279 billion commitment to memory chip suppliers, up from $119 billion three months prior, to support its data center growth. The spending, focused on high bandwidth memory (HBM), is aimed at securing supply for AI chip production. Nvidia's data center revenue grew 117% year-over-year to $89 billion in Q2 FY2027. The company expects 70% total revenue growth in FY2028, driven by AI chip shipments. The bulk of the spending will benefit SK Hynix and Micron Technology (MU).

Micron Technology plans to double its capital expenditures to over $45 billion in fiscal 2027, citing growing AI-driven demand for memory. The company is investing in new manufacturing capacity globally, with projects in the U.S., Taiwan, Japan, and Singapore. Micron expects new supply to begin ramping in 2028, addressing shortages in AI memory. The company is also pursuing multiyear strategic agreements with customers to secure committed supply and demand.

Micron Technology (MU) stock rose 707% over the past year, driven by a memory shortage. The company signed 16 multiyear contracts covering 20% of DRAM and 33% of NAND volume, with $100B in cumulative revenue at minimum prices. Fiscal Q3 2026 revenue was $41.5B, up 346% YoY, with gross margin at 84.9%. Micron plans $27B in capital spending for new fabs, backed by $24.4B in net cash. The stock is 23% below its high, reflecting moderating price gains.

The U.S. Court of Appeals for the Federal Circuit upheld Netlist Inc. (NLST) memory module patents, rejecting Micron Technology Inc.'s (MU) appeal. Micron must pay $445M in patent infringement verdicts. NLST shares rose 20%, MU shares gained 2.5% on Friday.

Nvidia (NVDA) reported strong Q2 earnings and raised Q3 revenue guidance to $108B, driving its stock up 9% and boosting tech sector gains. Nasdaq, S&P 500, and Dow closed higher. Other notable movers include Okta (OKTA) +29%, Salesforce (CRM) +23%, and CrowdStrike (CRWD) +20%. Corporate profits surged $400B in Q2, partly due to $71B in tariff refunds.