Mobile and ClientThin moat

Micron Technology (MU) — moat facet

Phone and PC memory: the largest loss in 2023 and the highest margin in 2026 — the cycle in one unit.

The Mobile and Client unit sells memory and storage for phones and personal computers, and it is the purest measure of the memory cycle.1 It was Micron's largest unit until fiscal 2025.

Mobile and Client operating income ($B)-$3.19BFY2023$0.0BFY2024$1.98BFY2025$9.87BQ3 FY26Micron Form 10-K FY2025 and 10-Q, May 2026
From the largest loss in the company to the highest margin.

Revenue was $7,394 million in fiscal 2023, $11,667 million in 2024 and $11,859 million in 2025.2 In fiscal 2023 it sold below cost: gross margin was a loss of $1,678 million and operating loss $3,189 million, the largest of any unit.3 It roughly broke even in 2024 and earned $1,981 million in 2025.4

It is paid at prices negotiated with phone and PC makers, largely quarter to quarter, so it takes the full force of both shortages and gluts. In the quarter to May 2026 it brought in $11,521 million, up 254%, and earned $9,873 million from operations, an 86% margin, the highest of the four.56

Nine-month revenue was $23,487 million against $8,099 million.7 The unit's research budget fell from $1,122 million in fiscal 2023 to $836 million in 2025, while the Cloud Memory unit's rose from $755 million to $1,315 million.8

This is a thin moat: the products are standard, the buyers are price-driven, and margins swing from losses to the highest in the company within three years. The number to watch is the unit's gross margin, 87% in the May quarter. It fell below zero in fiscal 2023, and it will be the first to show the next downturn.

Moat trajectory: Holding steady

An 86% operating margin at the peak after a $3.2B loss in fiscal 2023; the unit will show the next downturn first.

The number that tests this moat
Reported
Mobile and Client revenue, latest quarter
$11.5B in Q3 FY2026, up 254% from $3.3B

Phone and PC memory prices are set quarter to quarter; this line falls first when the shortage ends.

Source: Micron Form 10-Q, May 2026 ↗
References
  1. ReportedThe Mobile and Client unit sells memory and storage for phones and personal computers, and it is the purest measure of the memory cycle.
    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 ↗
  2. ReportedRevenue was $7,394 million in fiscal 2023, $11,667 million in 2024 and $11,859 million in 2025.
    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. ReportedIn fiscal 2023 it sold below cost: gross margin was a loss of $1,678 million and operating loss $3,189 million, the largest of any unit.
    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 ↗
  4. ReportedIt roughly broke even in 2024 and earned $1,981 million in 2025.
    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. ReportedIn the quarter to May 2026 it brought in $11,521 million, up 254%, and earned $9,873 million from operations, an 86% margin, the highest of the four.
    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 ↗
  6. Moat Explorer calcIn the quarter to May 2026 it brought in $11,521 million, up 254%, and earned $9,873 million from operations, an 86% margin, the highest of the four.
    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 ↗
  7. ReportedNine-month revenue was $23,487 million against $8,099 million.
    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 ↗
  8. ReportedThe unit's research budget fell from $1,122 million in fiscal 2023 to $836 million in 2025, while the Cloud Memory unit's rose from $755 million to $1,315 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 ↗
Sources
Generated September 23, 2026