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Elon Musk criticized memory manufacturers for what he described as "extortionate" chip pricing during a severe shortage of conventional DRAM and high-bandwidth memory (HBM). Although he did not name the companies, his comments suggest Samsung Electronics and SK hynix are the targets, while he praised Micron for its "reasonable" approach. Musk stated on X that customers will remember this behavior and noted that Micron is making a smart move to secure long-term loyalty. He highlighted that Micron recently achieved an 81% gross margin, which he contrasted with the pricing tactics of others.

Musk did not disclose specific price terms or confirm if competitors charge significantly more than Micron for similar products. However, his remarks indicate frustration with South Korean memory makers. Historically, memory prices rise when demand outpaces supply, but manufacturers usually expand capacity to stabilize markets. This time, production has not increased proportionally to the demand surge, causing supply to lag behind and keeping prices high for years.

Micron’s financial results show it is capitalizing on this market shift. In its fourth quarter of fiscal 2026, the company reported revenue of $54.23 billion with an 81% GAAP gross margin. Its cloud memory unit earned $16.283 billion with an 83% margin, while its core data center storage business sold goods worth $18.002 billion at a 90% margin. Notably, Micron’s mobile and client revenue reached $13.114 billion with a 90% non-GAAP gross margin, proving that even reasonable prices can generate extraordinary profits in the current environment.