The Revenue LinesNarrow moat

Micron Technology (MU) — moat facet

Four units selling the same two memories to different buyers: in 2023 three lost money, in 2026 all four earn over 75%.

Micron reports four business units, organised by who buys the memory rather than by what the memory is. In fiscal 2025 the Cloud Memory unit brought in $13,524 million, Mobile and Client $11,859 million, Core Data Center $7,229 million and Automotive and Embedded $4,753 million.1 All four sell the same two products, DRAM and NAND, which were 76% and 23% of fiscal 2025 revenue.23

Operating margin by business unit, fiscal 2023 against Q3 FY2026 (%)-41.0%Cloud 202378.4%CloudQ3 26-26.5%Core DC202382.6%Core DCQ3 26-43.1%Mobile 202385.7%MobileQ3 2616.4%Auto 202375.4%Auto Q3 26Segment operating income / revenue; Micron Form 10-K FY2025 and 10-Q, May 2026
In the bust three units lost money; at the peak all four earn over 75%.

The fiscal 2025 10-K reports these units and restates fiscal 2023 and 2024 on the same basis.4 That makes the last memory bust visible unit by unit: in fiscal 2023 three of the four lost money, and only Automotive and Embedded earned an operating profit, $680 million.5

The shortage of 2026 has lifted all four at once. In the quarter to 28 May 2026 their operating margins ran from 75% to 86%, and total revenue was $41,456 million against $9,301 million a year earlier.67 Growth ranged from 254% in Mobile and Client to 653% in Core Data Center.89

The mix has shifted toward the data center. The two data-center units were 25.7% of revenue in fiscal 2023 and 61.0% in the latest quarter.101112 The Cloud Memory unit, which sells high-bandwidth memory to all data-center customers, holds the one customer that was 17% of fiscal 2025 revenue.13

The competitive structure behind all four is argued under The Memory Oligopoly, and HBM's economics under The HBM & AI Memory Franchise. These pages take each unit as a business.

The question the four raise together is how much of today's margin is structural. The measure is the spread between the best and worst unit's operating margin: about 10 points in the latest quarter, against almost 60 points in fiscal 2023, from a 16% profit to a 43% loss.141516 When the units diverge again, the cycle has turned.

Moat trajectory: Widening

All four units grew 250-650% in the May 2026 quarter; the data-center units reached 61% of revenue.

The number that tests this moat
Moat Explorer calc
Spread between the best and worst business unit's operating margin
About 10 points in Q3 FY2026 (75.4% to 85.7%), against almost 60 in fiscal 2023

When the units diverge again, the cycle has turned.

How it's calculated: Segment operating income / segment revenue, highest less lowest.
Source: Micron Form 10-K FY2025 and 10-Q, May 2026 (Moat Explorer calc) ↗
Dig deeper
DIG DEEPER 01
Cloud Memory
HBM and hyperscaler memory: from a $768 million loss in 2023 to a 78% operating margin, with one customer at 17% of the company.
DIG DEEPER 02
Core Data Center
The fastest-growing unit in 2026, up 653% in a quarter — AI demand spreading beyond the largest clouds.
DIG DEEPER 03
Mobile and Client
Phone and PC memory: the largest loss in 2023 and the highest margin in 2026 — the cycle in one unit.
DIG DEEPER 04
Automotive and Embedded
Cars and factories: the only unit that stayed profitable through the 2023 bust.
References
  1. ReportedIn fiscal 2025 the Cloud Memory unit brought in $13,524 million, Mobile and Client $11,859 million, Core Data Center $7,229 million and Automotive and Embedded $4,753 million.
    Micron Form 10-K, FY2025 - revenue $37,378M/$25,111M/$15,540M; DRAM $28,578M/$17,603M/$10,978M; NAND $8,503M/$7,227M/$4,206M; operating income $9,770M/$1,304M/-$5,745M; R&D $3,798M/$3,430M; capex $15,857M/$8,386M/$7,676M; government incentives received $2,005M/$315M/$710M; business units (CMBU $13,524M/$3,792M/$1,872M, CDBU $7,229M/$4,984M/$2,124M, MCBU $11,859M/$11,667M/$7,394M, AEBU $4,753M/$4,631M/$4,139M) with segment gross margin and operating income; one customer 17% of 2025 revenue; revenue by customer headquarters (U.S. $24,113M, Mainland China $2,639M) — FY2023-FY2025 · publ. October 2025 · source ↗
  2. ReportedAll four sell the same two products, DRAM and NAND, which were 76% and 23% of fiscal 2025 revenue.
    Micron Form 10-K, FY2025 - revenue $37,378M/$25,111M/$15,540M; DRAM $28,578M/$17,603M/$10,978M; NAND $8,503M/$7,227M/$4,206M; operating income $9,770M/$1,304M/-$5,745M; R&D $3,798M/$3,430M; capex $15,857M/$8,386M/$7,676M; government incentives received $2,005M/$315M/$710M; business units (CMBU $13,524M/$3,792M/$1,872M, CDBU $7,229M/$4,984M/$2,124M, MCBU $11,859M/$11,667M/$7,394M, AEBU $4,753M/$4,631M/$4,139M) with segment gross margin and operating income; one customer 17% of 2025 revenue; revenue by customer headquarters (U.S. $24,113M, Mainland China $2,639M) — FY2023-FY2025 · publ. October 2025 · source ↗
  3. Moat Explorer calcAll four sell the same two products, DRAM and NAND, which were 76% and 23% of fiscal 2025 revenue.
    Moat Explorer calculation from Micron's Forms 10-K FY2021-FY2025 and 10-Qs for fiscal 2026: margins, shares and growth rates as stated — 2019 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  4. ReportedThe fiscal 2025 10-K reports these units and restates fiscal 2023 and 2024 on the same basis.
    Micron Form 10-K, FY2025 - revenue $37,378M/$25,111M/$15,540M; DRAM $28,578M/$17,603M/$10,978M; NAND $8,503M/$7,227M/$4,206M; operating income $9,770M/$1,304M/-$5,745M; R&D $3,798M/$3,430M; capex $15,857M/$8,386M/$7,676M; government incentives received $2,005M/$315M/$710M; business units (CMBU $13,524M/$3,792M/$1,872M, CDBU $7,229M/$4,984M/$2,124M, MCBU $11,859M/$11,667M/$7,394M, AEBU $4,753M/$4,631M/$4,139M) with segment gross margin and operating income; one customer 17% of 2025 revenue; revenue by customer headquarters (U.S. $24,113M, Mainland China $2,639M) — FY2023-FY2025 · publ. October 2025 · source ↗
  5. ReportedThat makes the last memory bust visible unit by unit: in fiscal 2023 three of the four lost money, and only Automotive and Embedded earned an operating profit, $680 million.
    Micron Form 10-K, FY2025 - revenue $37,378M/$25,111M/$15,540M; DRAM $28,578M/$17,603M/$10,978M; NAND $8,503M/$7,227M/$4,206M; operating income $9,770M/$1,304M/-$5,745M; R&D $3,798M/$3,430M; capex $15,857M/$8,386M/$7,676M; government incentives received $2,005M/$315M/$710M; business units (CMBU $13,524M/$3,792M/$1,872M, CDBU $7,229M/$4,984M/$2,124M, MCBU $11,859M/$11,667M/$7,394M, AEBU $4,753M/$4,631M/$4,139M) with segment gross margin and operating income; one customer 17% of 2025 revenue; revenue by customer headquarters (U.S. $24,113M, Mainland China $2,639M) — FY2023-FY2025 · publ. October 2025 · source ↗
  6. ReportedIn the quarter to 28 May 2026 their operating margins ran from 75% to 86%, and total revenue was $41,456 million against $9,301 million a year earlier.
    Micron Form 10-Q, quarter ended 28 May 2026 - revenue $41,456M ($9,301M); cost of goods sold $6,400M ($5,793M); gross margin 84.6%; operating income $33,318M; net income $28,243M; DRAM $31,328M, NAND $9,943M; business units CMBU $13,769M, CDBU $11,524M, MCBU $11,521M, AEBU $4,634M with segment operating income; nine-month revenue $78,959M, operating income $55,589M, R&D $3,737M, capex $19,602M, government incentives $2,989M, income tax $8,178M; take-or-pay strategic customer agreements with remaining performance obligations of about $5 billion (about one-third within twelve months), $422M in contract liabilities — Q3 FY2026 · publ. June 2026 · source ↗
  7. Moat Explorer calcIn the quarter to 28 May 2026 their operating margins ran from 75% to 86%, and total revenue was $41,456 million against $9,301 million a year earlier.
    Moat Explorer calculation from Micron's Forms 10-K FY2021-FY2025 and 10-Qs for fiscal 2026: margins, shares and growth rates as stated — 2019 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  8. ReportedGrowth ranged from 254% in Mobile and Client to 653% in Core Data Center.
    Micron Form 10-Q, quarter ended 28 May 2026 - revenue $41,456M ($9,301M); cost of goods sold $6,400M ($5,793M); gross margin 84.6%; operating income $33,318M; net income $28,243M; DRAM $31,328M, NAND $9,943M; business units CMBU $13,769M, CDBU $11,524M, MCBU $11,521M, AEBU $4,634M with segment operating income; nine-month revenue $78,959M, operating income $55,589M, R&D $3,737M, capex $19,602M, government incentives $2,989M, income tax $8,178M; take-or-pay strategic customer agreements with remaining performance obligations of about $5 billion (about one-third within twelve months), $422M in contract liabilities — Q3 FY2026 · publ. June 2026 · source ↗
  9. Moat Explorer calcGrowth ranged from 254% in Mobile and Client to 653% in Core Data Center.
    Moat Explorer calculation from Micron's Forms 10-K FY2021-FY2025 and 10-Qs for fiscal 2026: margins, shares and growth rates as stated — 2019 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  10. ReportedThe two data-center units were 25.7% of revenue in fiscal 2023 and 61.0% in the latest quarter.
    Micron Form 10-K, FY2025 - revenue $37,378M/$25,111M/$15,540M; DRAM $28,578M/$17,603M/$10,978M; NAND $8,503M/$7,227M/$4,206M; operating income $9,770M/$1,304M/-$5,745M; R&D $3,798M/$3,430M; capex $15,857M/$8,386M/$7,676M; government incentives received $2,005M/$315M/$710M; business units (CMBU $13,524M/$3,792M/$1,872M, CDBU $7,229M/$4,984M/$2,124M, MCBU $11,859M/$11,667M/$7,394M, AEBU $4,753M/$4,631M/$4,139M) with segment gross margin and operating income; one customer 17% of 2025 revenue; revenue by customer headquarters (U.S. $24,113M, Mainland China $2,639M) — FY2023-FY2025 · publ. October 2025 · source ↗
  11. ReportedThe two data-center units were 25.7% of revenue in fiscal 2023 and 61.0% in the latest quarter.
    Micron Form 10-Q, quarter ended 28 May 2026 - revenue $41,456M ($9,301M); cost of goods sold $6,400M ($5,793M); gross margin 84.6%; operating income $33,318M; net income $28,243M; DRAM $31,328M, NAND $9,943M; business units CMBU $13,769M, CDBU $11,524M, MCBU $11,521M, AEBU $4,634M with segment operating income; nine-month revenue $78,959M, operating income $55,589M, R&D $3,737M, capex $19,602M, government incentives $2,989M, income tax $8,178M; take-or-pay strategic customer agreements with remaining performance obligations of about $5 billion (about one-third within twelve months), $422M in contract liabilities — Q3 FY2026 · publ. June 2026 · source ↗
  12. Moat Explorer calcThe two data-center units were 25.7% of revenue in fiscal 2023 and 61.0% in the latest quarter.
    Moat Explorer calculation from Micron's Forms 10-K FY2021-FY2025 and 10-Qs for fiscal 2026: margins, shares and growth rates as stated — 2019 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  13. ReportedThe Cloud Memory unit, which sells high-bandwidth memory to all data-center customers, holds the one customer that was 17% of fiscal 2025 revenue.
    Micron Form 10-K, FY2025 - revenue $37,378M/$25,111M/$15,540M; DRAM $28,578M/$17,603M/$10,978M; NAND $8,503M/$7,227M/$4,206M; operating income $9,770M/$1,304M/-$5,745M; R&D $3,798M/$3,430M; capex $15,857M/$8,386M/$7,676M; government incentives received $2,005M/$315M/$710M; business units (CMBU $13,524M/$3,792M/$1,872M, CDBU $7,229M/$4,984M/$2,124M, MCBU $11,859M/$11,667M/$7,394M, AEBU $4,753M/$4,631M/$4,139M) with segment gross margin and operating income; one customer 17% of 2025 revenue; revenue by customer headquarters (U.S. $24,113M, Mainland China $2,639M) — FY2023-FY2025 · publ. October 2025 · source ↗
  14. ReportedThe measure is the spread between the best and worst unit's operating margin: about 10 points in the latest quarter, against almost 60 points in fiscal 2023, from a 16% profit to a 43% loss.
    Micron Form 10-K, FY2025 - revenue $37,378M/$25,111M/$15,540M; DRAM $28,578M/$17,603M/$10,978M; NAND $8,503M/$7,227M/$4,206M; operating income $9,770M/$1,304M/-$5,745M; R&D $3,798M/$3,430M; capex $15,857M/$8,386M/$7,676M; government incentives received $2,005M/$315M/$710M; business units (CMBU $13,524M/$3,792M/$1,872M, CDBU $7,229M/$4,984M/$2,124M, MCBU $11,859M/$11,667M/$7,394M, AEBU $4,753M/$4,631M/$4,139M) with segment gross margin and operating income; one customer 17% of 2025 revenue; revenue by customer headquarters (U.S. $24,113M, Mainland China $2,639M) — FY2023-FY2025 · publ. October 2025 · source ↗
  15. ReportedThe measure is the spread between the best and worst unit's operating margin: about 10 points in the latest quarter, against almost 60 points in fiscal 2023, from a 16% profit to a 43% loss.
    Micron Form 10-Q, quarter ended 28 May 2026 - revenue $41,456M ($9,301M); cost of goods sold $6,400M ($5,793M); gross margin 84.6%; operating income $33,318M; net income $28,243M; DRAM $31,328M, NAND $9,943M; business units CMBU $13,769M, CDBU $11,524M, MCBU $11,521M, AEBU $4,634M with segment operating income; nine-month revenue $78,959M, operating income $55,589M, R&D $3,737M, capex $19,602M, government incentives $2,989M, income tax $8,178M; take-or-pay strategic customer agreements with remaining performance obligations of about $5 billion (about one-third within twelve months), $422M in contract liabilities — Q3 FY2026 · publ. June 2026 · source ↗
  16. Moat Explorer calcThe measure is the spread between the best and worst unit's operating margin: about 10 points in the latest quarter, against almost 60 points in fiscal 2023, from a 16% profit to a 43% loss.
    Moat Explorer calculation from Micron's Forms 10-K FY2021-FY2025 and 10-Qs for fiscal 2026: margins, shares and growth rates as stated — 2019 to Q3 FY2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026