Wall Street still expects Micron (MU), Nvidia (NVDA), and the rest of the industry to generate about $700 billion in profit in 2027.
The damage from the recent stock weakness has spread from Micron and Nvidia to Samsung (005930.KS) and SK Hynix (SKHY), which just debuted in the US on Friday, even as earnings estimates keep climbing.
Micron offers the most dramatic example. The memory maker, whose stock fell more than 4% over the past month, is projected to earn $83 billion in fiscal 2026 and $176 billion in fiscal 2027, according to Bloomberg consensus estimates, after earning about $9 billion in fiscal 2025.
The surge reflects AI's growing appetite for advanced memory.
High-bandwidth memory sits alongside accelerators such as Nvidia's GPUs, feeding them data fast enough to keep the processors working. Tight supply and multiyear customer agreements have helped turn Micron's latest earnings blowout into a much larger reset for profit expectations.
Nvidia supplies the scale. It is projected to earn roughly $316 billion in calendar year 2027, while Micron's calendarized estimate approaches $189 billion. Together, the two companies account for about 72% of the projected profit pool. Add Broadcom (AVGO), and the share rises to roughly 85%.
But the boom does not disappear when those three are removed.
The rest of the group is expected to more than double combined profit from about $46 billion in 2025 to roughly $105 billion in 2027.
That reflects the ongoing cash-flow transfer from hyperscalers to chipmakers. Big Tech is funding the build-out, while memory suppliers, equipment makers, and chip designers are collecting a growing share of the profits.
The forecasts still depend on artificial intelligence spending staying strong, memory pricing holding up, and new capacity arriving slowly enough to avoid another glut.
JPMorgan expects that constraint to persist, writing in a recent client note that "meaningful supply additions are not coming before the start of 2028."
Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at [email protected].
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