Even with those kind of numbers, it's still not enough to make a new Fab from the ground up...

An 87% margin, wow that's nuts, but I'll remember how they dropped the consumer market like trash if they come crawling back, well if the AI bubble pops.

Hecate91An 87% margin, wow that's nuts, but I'll remember how they dropped the consumer market like trash if they come crawling back, well if the AI bubble pops.

Me too. And I keep reminding people to remember how they instantly dropped consumers in chase of sweet sweet enterprise money. It's a shame most people have a memory of a gold fish and don't hold a grudge against greedy companies. But I absolutely will.

cue everyone whining about Crucial.

AthenaEven with those kind of numbers, it's still not enough to make a new Fab from the ground up...

Oh there 100% is money for a new fab, they dont want to ever go back to the days of only 10-20% margins

Data center gross margin up from 41% (2025) to 90% (2026), revenue increased 11.5-times more Y/Y
Mobile and client gross margin up from 36% (2025) to 90% (2026), revenue increased 3.5-times more Y/Y
Automotive and embedded gross margin up from 31% (2025) to 84% (2026), revenue increased 4.75-times more Y/Y

Revenue overall increase Y/Y by 256%

But, yeah, there's a scarcity ...
There's a scarcity, FFS!
Everything is in stock. (SSDs, memory cards, USB flash drives, DDR4/DDR5 memory)
But there's still a scarcity despite everything being in stock in good amounts!

It's just fuckin' expensive.
Why?
Just look at those margins.
And this is just one member of the memory cartel trio.

Market panic caused by OpenAI and cooperated with memory cartel surely does it's job.

But some people just love being played, so yeah, oficially, it's chip crisis due to scarcity.

Hecate91An 87% margin, wow that's nuts, but I'll remember how they dropped the consumer market like trash if they come crawling back, well if the AI bubble pops.

If or when the AI bubbles pops its going to reset the US economy.

A&P211If or when the AI bubbles pops its going to reset the US World economy.

So many Western countries are focusing on AI at the moment its scary

A&P211If or when the AI bubbles pops its going to reset the US economy.

www.thenationalnews.com/future/technology/2026/09/29/ai-industry-needs-to-earn-6-trillion-by-2031-to-justify-data-centres/
AI would need to have $6 trillion in profit by 2031 to justify the rate at companies are spending on datacenters. The current bubble doesn't seem sustainable, and I'd rather the reset happen sooner than later, the AI tech bros and companies involved would probably get a bailout anyway.

RejZoRMe too. And I keep reminding people to remember how they instantly dropped consumers in chase of sweet sweet enterprise money. It's a shame most people have a memory of a gold fish and don't hold a grudge against greedy companies. But I absolutely will.

Why would you hold a grudge? Micron dropped us the same way we would drop micron if we found memory cheaper from another company. I care about my bottom line and micro cares about theirs, seems fair.

LittleBroData center gross margin up from 41% (2025) to 90% (2026), revenue increased 11.5-times more Y/Y
Mobile and client gross margin up from 36% (2025) to 90% (2026), revenue increased 3.5-times more Y/Y
Automotive and embedded gross margin up from 31% (2025) to 84% (2026), revenue increased 4.75-times more Y/Y

Revenue overall increase Y/Y by 256%

But, yeah, there's a scarcity ...
There's a scarcity, FFS!
Everything is in stock. (SSDs, memory cards, USB flash drives, DDR4/DDR5 memory)
But there's still a scarcity despite everything being in stock in good amounts!

It's just fuckin' expensive.
Why?
Just look at those margins.
And this is just one member of the memory cartel trio.

Market panic caused by OpenAI and cooperated with memory cartel surely does it's job.

But some people just love being played, so yeah, oficially, it's chip crisis due to scarcity.

That's the definition of scarcity. Prices go up until people stop buying hence there is stock.

JustBenchingWhy would you hold a grudge? Micron dropped us the same way we would drop micron if we found memory cheaper from another company. I care about my bottom line and micro cares about theirs, seems fair.


That's the definition of scarcity. Prices go up until people stop buying hence there is stock.

I valued Crucial for reliability even if it was sometimes more expensive. They dropped us the moment they smelled more profits. So, yeah, fuck them. We're not the same.

RejZoRI valued Crucial for reliability even if it was sometimes more expensive. They dropped us the moment they smelled more profits. So, yeah, fuck them. We're not the same.

How much more expensive? Would you pay double? Triple? Of course not, you would drop them like a hot potato. Just like micron did when they were offered triple the money for Ai than what you were willing to pay.

RejZoRI valued Crucial for reliability even if it was sometimes more expensive. They dropped us the moment they smelled more profits. So, yeah, fuck them. We're not the same.

Yeah, I never had an issue with Crucial ram or SSD's, they had a nice tool for quickly finding compatible memory for OEM systems also. Yet Micron decided to chase the hype train for quarterly gains instead of thinking about the long term.

DRAM prices increased several times due to illegal price fixing and micron's revenue also increased several times, what a surprise

Their tax breaks are still subsidised by the tax payer cause obviously they are really struggling to make profit with such low margins

JustBenchingThat's the definition of scarcity. Prices go up until people stop buying hence there is stock.

Scarcity is about permanent/infinite demand for goods with limited availability (due to limited means of obtaining or producing them) which results in high price of goods.
This is by nature. Gold, for example, it's limited in availability, you can't make it synthetically. Or drinkable water is scarce. Everyone wants it, though not everyone has easy access to it.

Current memory chips crisis, often referred to as "scarcity" or "shortage", is not a permanent thing and definitely not caused by natural means.
Prices are way too much inflated despite the low demand. Also, demand gets even lower as prices get higher.
(I'm talking about demand for DYI hardware that cannot be repurposed for AI data centers.
DDR4/5 kits, flash drives, memory cards ... are not really required for AI accelerators to work.)

It can be tracked directly to Open AI's statement from October 2025.
AI datacenters were already built and new were being built at that time, AI accelerators were already a thing back then.
(OpenGPT was handled to public in late 2022, version 4 in 2023. Copilot in early 2023, Gemini in late 2023. Blackwell accelerators were introduced in 2024.)
Micron, Samsung and SK hynix, all three raised priced (even for already produced goods) at the same time and used OpenAI's non-binding agreement as excuse.
This underlines statement about this being a coortinated action - a cartel action. Words like "scarcity" and/or "shortage" due to extreme AI demand are used as smoke screen.

In a healthy market, when there is huge demand for goods, manufacturers rush to increase production to sell goods at high prices caused by increased demand.
This eventually satisfies the demand and prices stabilize, but they still make a lot of money by selling goods at prices created by extreme demand, so in the end it's worth it.

Unfortunately for us, we're living in a manipulated market and Micron's fiscal reports aligns perfectly with OpenAI's non-binding agreement.



Take a look at Revenue vs Cost of goods sold (money made by selling goods vs money required to produce them).
While production expenses were actually flat (+10% YoY increase), YoY revenue increase is jawdropping 257%.

This is from previous fiscal year 2025:

LittleBroScarcity is about permanent/infinite demand for goods with limited availability (due to limited means of obtaining or producing them) which results in high price of goods.
This is by nature. Gold, for example, it's limited in availability, you can't make it synthetically. Or drinkable water is scarce. Everyone wants it, though not everyone has easy access to it.

Current memory chips crisis, often referred to as "scarcity" or "shortage", is not a permanent thing and definitely not caused by natural means.
Prices are way too much inflated despite the low demand. Also, demand gets even lower as prices get higher.
(I'm talking about demand for DYI hardware that cannot be repurposed for AI data centers.
DDR4/5 kits, flash drives, memory cards ... are not really required for AI accelerators to work.)

It can be tracked directly to Open AI's statement from October 2025.
AI datacenters were already built and new were being built at that time, AI accelerators were already a thing back then.
(OpenGPT was handled to public in late 2022, version 4 in 2023. Copilot in early 2023, Gemini in late 2023. Blackwell accelerators were introduced in 2024.)
Micron, Samsung and SK hynix, all three raised priced (even for already produced goods) at the same time and used OpenAI's non-binding agreement as excuse.
This underlines statement about this being a coortinated action - a cartel action. Words like "scarcity" and/or "shortage" due to extreme AI demand are used as smoke screen.

In a healthy market, when there is huge demand for goods, manufacturers rush to increase production to sell goods at high prices caused by increased demand.
This eventually satisfies the demand and prices stabilize, but they still make a lot of money by selling goods at prices created by extreme demand, so in the end it's worth it.

Unfortunately for us, we're living in a manipulated market and Micron's fiscal reports aligns perfectly with OpenAI's non-binding agreement.



Take a look at Revenue vs Cost of goods sold (money the made by selling goods vs money the required to produce them).
While production expenses were actually flat (+10% YoY increase), YoY revenue increase is jawdropping 257%.

This is from previous fiscal year 2025:

Huh? If production has shifted towards enterprise and Ai that naturally means there is less supply for DIY, phones tablets laptops and the likes, hence the price increase.

Panther_SeraphinOh there 100% is money for a new fab, they dont want to ever go back to the days of only 10-20% margins

You can see what they are making...

the Idaho expansion is $50B
the NY Fab expansion is $100B for phase 1 and that won't come online until 2029/2030
then they are adding 3 more Fabs at that location, but these are like '34, '37, '41 away, so when all this is done, we are talking $600B-$1T in investments

so they aren't sitting on their hands, and of course they want high margins, all businesses do
Normally this will work itself out, but we got such a huge data center hording issue, it's not funny

AthenaEven with those kind of numbers, it's still not enough to make a new Fab from the ground up...

Having fabs is a massive liability, they almost ruined Intel, all of these companies would rather pay an exorbitant amount of money in exchange for wafers than pay an exorbitant amount of money in exchange for a fab that might never give them any functioning wafers.

Vya DomusHaving fabs is a massive liability, they almost ruined Intel, all of these companies would rather pay an exorbitant amount of money in exchange for wafers than pay an exorbitant amount of money in exchange for a fab that might never give them any functioning wafers.

exactly, it's like people can't comprehend this

if Fabs didn't cost so much, it would be a completely different story, but, it's such a massive gamble, and it could end the company if the call is wrong, that is why this is so high-stakes