May. 17 at 2:46 AM
$MU May 16, 2026 — Jensen Huang, NVDA, said agentic AI requires 1,000% more compute than generative AI & shift has happened in just 2 yrs.
Why this is big for MU:
• A 1,000% compute increase → 10× more HBM and DRAM bandwidth demand
• MU’s product mix is shifting from commodity DRAM (30–45% GM) to HBM3E / HBM4 (70–85% GrossMargin) & since HBM now only represents 11%-15% of rev and growing each year, EPS will continue to shoot up QOQ and YOY
• MU has multi-year take or pay contracts with prepayment clauses with major hyperscalers and they have an escalation clause . . . to increase prices
• Since MU’s HBM3E is the gold standard, and is the fastest, lowest power consumption (30%-50%), best thermals and higher yields, that very same technology should allow, in the next year or so, MU to have the best HBM4 in the world (only 3 manufacturers in the world – MU, Hynix, Samsung)
