Automotive and EmbeddedNarrow moat

Micron Technology (MU) — moat facet

Cars and factories: the only unit that stayed profitable through the 2023 bust.

The Automotive and Embedded unit sells memory and storage for cars, industrial equipment and consumer devices.1 It is the smallest unit and the steadiest.

Automotive and Embedded operating income ($M)$680MFY2023$432MFY2024$557MFY2025$3,493MQ3 FY26Micron Form 10-K FY2025 and 10-Q, May 2026
The one unit with a profit in every year shown.

Revenue was $4,139 million in fiscal 2023, $4,631 million in 2024 and $4,753 million in 2025.2 It was the only unit with an operating profit in fiscal 2023, $680 million, and earned $432 million and $557 million in the next two years.3

It is paid under longer product lifecycles than phones or servers: cars and machines use the same memory for years, and qualification takes time. That smooths its prices on the way down. It also limits the upside: gross margin was 29.8% in fiscal 2023 and 25.0% in 2025, when the data-center units were already far ahead.45

The 2026 shortage reached it anyway. In the quarter to May 2026 revenue was $4,634 million, up 311%, and operating income $3,493 million, a 75% margin.67 Nine-month revenue was $9,062 million against $3,319 million.8

This is a narrow moat built on qualification and long product lives rather than on technology. The number to follow is the unit's operating margin at the next downturn: $680 million of profit on $4.1 billion of revenue in fiscal 2023, when everything else lost money. Holding a profit through the next bust would confirm that the steadiness is structural.

Moat trajectory: Holding steady

Steady revenue near $4.7B a year and a profit through the bust; lifted to a 75% margin by the 2026 shortage.

The number that tests this moat
Reported
Automotive and Embedded revenue, first nine months
$9.1B in the nine months to May 2026, from $3.3B

The steadiest unit; a profit through the next downturn, as in fiscal 2023, would confirm the steadiness is structural.

Source: Micron Form 10-Q, May 2026 ↗
References
  1. ReportedThe Automotive and Embedded unit sells memory and storage for cars, industrial equipment and consumer devices.
    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 $4,139 million in fiscal 2023, $4,631 million in 2024 and $4,753 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. ReportedIt was the only unit with an operating profit in fiscal 2023, $680 million, and earned $432 million and $557 million in the next two years.
    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 also limits the upside: gross margin was 29.8% in fiscal 2023 and 25.0% in 2025, when the data-center units were already far ahead.
    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. Moat Explorer calcIt also limits the upside: gross margin was 29.8% in fiscal 2023 and 25.0% in 2025, when the data-center units were already far ahead.
    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 ↗
  6. ReportedIn the quarter to May 2026 revenue was $4,634 million, up 311%, and operating income $3,493 million, a 75% margin.
    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 ↗
  7. Moat Explorer calcIn the quarter to May 2026 revenue was $4,634 million, up 311%, and operating income $3,493 million, a 75% margin.
    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 ↗
  8. ReportedNine-month revenue was $9,062 million against $3,319 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 ↗
Sources
Generated September 23, 2026