{"slug": "micron-and-nvidia-are-powering-a-700-billion-chip-profit-boom-chart-of-the-day", "title": "Micron and Nvidia are powering a $700 billion chip profit boom: Chart of the Day", "summary": "Micron and Nvidia are projected to generate about $700 billion in combined profit by 2027, driven by AI demand for advanced memory and accelerators. The two companies account for roughly 72% of the projected profit pool, with Broadcom adding another 13%. The boom depends on sustained AI spending and tight memory supply.", "body_md": "Global chip stocks have lost roughly $2.7 trillion in market value since the PHLX Semiconductor Index ([^SOX](https://finance.yahoo.com/quote/%5ESOX/)) peaked on June 22.\n\nWall Street still expects Micron ([MU](https://finance.yahoo.com/quote/MU/)), Nvidia ([NVDA](https://finance.yahoo.com/quote/NVDA)), and the rest of the industry to generate about $700 billion in profit in 2027.\n\nThe damage from the recent stock weakness has spread from Micron and Nvidia to Samsung ([005930.KS](https://finance.yahoo.com/quote/005930.KS/)) and SK Hynix ([SKHY](https://finance.yahoo.com/quote/SKHY/)), which just [debuted in the US on Friday](https://finance.yahoo.com/markets/article/sk-hynix-stock-falls-leads-broader-chip-sector-declines-as-ai-trade-angst-returns-120751185.html), even as earnings estimates keep climbing.\n\nMicron 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.\n\nThe surge reflects AI's growing appetite for advanced memory.\n\nHigh-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](https://finance.yahoo.com/markets/article/micron-stock-soars-after-blowout-earnings-expose-ais-memory-bottleneck-204039376.html?utm_source=chatgpt.com) into a much larger reset for profit expectations.\n\nNvidia 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](https://finance.yahoo.com/quote/AVGO)), and the share rises to roughly 85%.\n\nBut the boom does not disappear when those three are removed.\n\nThe rest of the group is expected to more than double combined profit from about $46 billion in 2025 to roughly $105 billion in 2027.\n\nThat reflects the ongoing [cash-flow transfer from hyperscalers to chipmakers](https://finance.yahoo.com/markets/article/big-tech-is-paying-for-the-ai-boom-and-chipmakers-are-cashing-in-chart-of-the-day-114043038.html?utm_source=chatgpt.com). Big Tech is funding the build-out, while memory suppliers, equipment makers, and chip designers are collecting a growing share of the profits.\n\nThe forecasts still depend on artificial intelligence spending staying strong, memory pricing holding up, and new capacity arriving slowly enough to avoid another glut.\n\nJPMorgan expects that constraint to persist, writing in a recent client note that \"meaningful supply additions are not coming before the start of 2028.\"\n\n*Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at **@SPYJared** or email him at jaredblikre@yahooinc.com.*\n\n**Click here for in-depth analysis of the latest stock market news and events moving stock prices**\n\n**Read the latest financial and business news from Yahoo Finance**", "url": "https://wpnews.pro/news/micron-and-nvidia-are-powering-a-700-billion-chip-profit-boom-chart-of-the-day", "canonical_source": "https://ca.finance.yahoo.com/news/micron-and-nvidia-are-powering-a-700-billion-chip-profit-boom-chart-of-the-day-100000068.html", "published_at": "2026-07-14 10:00:00+00:00", "updated_at": "2026-07-14 10:23:09.965605+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-infrastructure", "ai-products"], "entities": ["Micron", "Nvidia", "Broadcom", "Samsung", "SK Hynix", "JPMorgan", "Yahoo Finance", "Jared Blikre"], "alternates": {"html": "https://wpnews.pro/news/micron-and-nvidia-are-powering-a-700-billion-chip-profit-boom-chart-of-the-day", "markdown": "https://wpnews.pro/news/micron-and-nvidia-are-powering-a-700-billion-chip-profit-boom-chart-of-the-day.md", "text": "https://wpnews.pro/news/micron-and-nvidia-are-powering-a-700-billion-chip-profit-boom-chart-of-the-day.txt", "jsonld": "https://wpnews.pro/news/micron-and-nvidia-are-powering-a-700-billion-chip-profit-boom-chart-of-the-day.jsonld"}}