The market is staring at $MU ’s 87% => 86.25% gross-margin dip and screaming peak cycle.
The decline is largely explained by ~$1B of higher incentive compensation flowing through inventory + fab/start-up costs as Micron expands capacity.
Some of that inventory-related headwind should start rolling off in Q2.
This looks more like a temporary cost bump than deteriorating memory economics.
The decline is largely explained by ~$1B of higher incentive compensation flowing through inventory + fab/start-up costs as Micron expands capacity.
Some of that inventory-related headwind should start rolling off in Q2.
This looks more like a temporary cost bump than deteriorating memory economics.