Why Micron is Decisively Better Positioned Than Intel Now

Micron Technology (NASDAQ:MU) and Intel (NASDAQ:INTC) some reported blockbuster earnings, but the underlying businesses archer precise antithetic stories. Micron delivered a 5th consecutive quarterly gross grounds arsenic AI representation request ran hot. Intel posted its seventh consecutive guidance bushed portion its foundry portion bleeds cash.

HBM Carries Micron. Turnaround Grit Carries Intel.

Micron's fiscal Q3 gross deed $41.46 billion, up 345.7% twelvemonth implicit year, with GAAP gross borderline exploding to 84.6%. CEO Sanjay Mehrotra told investors information halfway gross exceeded $25 cardinal connected an annualized tally complaint of implicit $100 billion, powered by HBM4 shipments that are ramping doubly arsenic accelerated arsenic HBM3E 12-high.

Intel's Q2 gross of $16.13 cardinal grew 25.4%, its strongest gross maturation successful much than 15 years. The Data Center and AI conception jumped 59%. Yet the institution posted a GAAP nett nonaccomplishment of $11.03 cardinal aft a $12.53 cardinal non-cash CHIPS Act charge, and Intel Foundry mislaid $2.1 cardinal successful the quarter.

One Owns a Bottleneck. One Is Building One.

Mehrotra locked successful 16 Strategic Customer Agreements representing astir 20% of DRAM and a 3rd of NAND volume, with cumulative minimum gross of astir $100 cardinal implicit the term. He said flatly that "at the level price... the gross margins are higher than highest margins astatine immoderate clip successful the past."

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Intel's stake is longer dated. Lip-Bu Tan is pushing 18A measurement 25% supra people and committed to 14A high-volume ramp successful 2028. Foundry needs outer customers to sign, and nary person been announced publicly. Capex is climbing supra $20 cardinal successful 2026.

Q4 Guidance Tells the Real Story

Micron guided fiscal Q4 gross to $50 cardinal with gross borderline adjacent 86% and EPS astir $31.00. Intel guided Q3 gross to a midpoint adjacent $16.3 cardinal and non-GAAP EPS of $0.38, with PC request expected to beryllium down debased treble digits for 2026. A viral Reddit thread comparing Micron to the June 2000 Forbes screen drew 2,216 upvotes, signaling cyclical caution.