HBM’s Manufacturing Complexities Mean General-Purpose DRAM Still The Primary Cash Cow For Companies Like Micron; Gross Margins Estimated To Reach 95% In 2027
Source: Wccftech· Omar Sohail· August 14, 2026
SynaBot summary
High Bandwidth Memory (HBM) is crucial for AI tasks in data centers and GPUs, but traditional DRAM remains more profitable for manufacturers like Micron. This trend is expected to continue for several more years, impacting memory market dynamics.
Key takeaways
- HBM is essential for AI compute power and bandwidth needs.
- Standard DRAM offers higher profit margins for memory makers.
- Micron and similar companies will prioritize profitable DRAM.
- This dynamic influences AI hardware availability and cost.
Why it matters
For AI professionals, this means HBM supply might remain constrained or expensive, potentially affecting the performance and cost of AI hardware. Understanding this market dynamic helps in planning AI infrastructure investments and managing expectations.
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