Datacenters and GPUs will continue to rely on HBM for AI inference as it offers both capacity and bandwidth, but the latest data reveals that memory manufacturers like Micron will continue to benefit from general-purpose DRAM shipments when comparing gross margins. In fact, the latest research states that allocating more manufacturing capacity for HBM is actually hurting Micron’s business.

From 2025, data from UBS states that Micron’s gross margin for general-purpose DRAM increased from 44 percent to 50 percent, with the largest jump being witnessed in early 2026, when this figure rose to 80 percent. Given that datacenter demand is yet to be sated, additional details mention that Micron’s gross margins could rise to 95 percent in 2027 and remain at around 93 percent for the majority of 2028

Looking at how the trends of memory production have shifted drastically, it would make sense for Micron to retain general-purpose DRAM production over HBM, given that the former brings increased earnings to the table. However, as SK Hynix and Samsung race against one another to develop next-generation HBM memory, including HBM4, which has now seemingly reached 80 percent yields , Micron won’t back down either, irrespective of whether this move dents its DRAM business.

The underlying issue with HBM production is the way the technology revolves around it. The process requires multiple DRAM dies stacked on top of one another, resulting in yield complications and increased costs. Unfortunately, with more DRAM supply required to manufacture HBM on the same wafer input, the available DRAM capacity begins to shrink.

With HBM’s gross margins estimated to be between 75 percent and 78 percent in 2027, it’s clear that Micron’s short-term gains for this technology aren’t as lucrative as general-purpose DRAM. Still, UBS believes that Micron’s HBM business is in a period of rapid expansion, with the manufacturer’s quarterly shipments slowly increasing from 0.1 Exabytes in early 2025 to 0.43 Exabytes by late 2027.

Despite having its DRAM capacity suffer in favor of HBM production, Micron probably knows that all of these gains are short-lived opportunities and that market prices will eventually stabilize. With all of these memory makers sitting on $38 billion of advance payments , a separate report has mentioned that their negotiation leverage will begin to wane in 2029, shifting in favor of customers, so Micron still has ample time to build out a meaningful capacity before this time limit expires.

News Source: Commercial Times

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