Direct Answer
60 SEC filers are classified under the Standard Industrial Classification code that describes the memory semiconductors industry, and their latest annual reports show $542.8 billion of combined revenue and a median operating margin of -2.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Memory semiconductor makers produce DRAM and NAND flash chips for phones, computers, servers and AI systems. Prices swing with supply and demand, and a few producers dominate, with high-bandwidth memory growing for AI. The first numbers to compare across companies here are bit shipments and price per bit, gross margin and inventory levels.
Key Industry Metrics
- Bit shipments and price per bit: The amount of memory capacity sold and the price earned per unit of capacity. Together they explain revenue swings, since prices move sharply with supply and demand.
- Gross margin: Revenue left after wafers and production costs. It is highly cyclical, widening in shortages and collapsing in oversupply, so it shows where the memory cycle stands.
- Inventory levels: Chips on hand at producers and customers. Rising inventory often leads to price cuts, while lean levels support prices, so it is a key signal of cycle turns.
- Capital spending: Money spent on fabs and tools. Since supply additions drive pricing, restrained spending supports prices, while a rush to expand can lead to oversupply later.
- High-bandwidth memory share: The portion of sales from stacked memory used with AI accelerators. It carries higher prices and tighter supply than standard memory, so a rising share can lift margin.
Primary Macro Drivers
- AI server demand: Servers for AI use large amounts of memory per system, raising bit shipments and price per bit, especially for high-bandwidth parts.
- Smartphone and PC cycles: Devices refresh on their own cycle, and memory content per device rises over time, so unit trends flow into bit shipments.
- Supply discipline: When makers hold back output, prices stabilize and margins improve; watch inventory and capital spending.
- Technology transitions: Moving to denser or stacked designs lowers cost per bit but needs new equipment and may change price and capacity.
Major Risks
- Boom-bust pricing: Oversupply can send prices down sharply, cutting gross margin and generating losses; watch price per bit, inventory and capital spending.
- Capital intensity: Plants and new nodes require huge spending that must be recouped across the cycle; watch capital spending against revenue and depreciation.
- Customer concentration: A few large buyers account for much of volume, so delayed orders move results; watch top-customer share and inventory.
- Export controls: Limits on selling advanced memory or tools to certain regions can affect revenue and plans; watch regional revenue and disclosures.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Memory Semiconductors Filers in the SEC Record
60 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3674. Their latest fiscal years end between 2025 and 2026, and together they reported $542.8 billion of revenue. Median revenue growth over the prior year was 20.3%. Median operating margin was -2.3% and median net margin -1.7%. Median total liabilities were 34% of total assets, and 27 of 60 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Nvidia Corp | $215.9 billion | 65.5% | 60.4% | 55.6% | FY 2026 |
| Broadcom Inc. | $63.9 billion | 23.9% | 39.9% | 36.2% | FY 2025 |
| Intel Corp | $52.9 billion | -0.5% | -4.2% | -0.5% | FY 2025 |
| Micron Technology Inc | $37.4 billion | 48.9% | 26.1% | 22.8% | FY 2025 |
| Advanced Micro Devices Inc | $34.6 billion | 34.3% | 10.7% | 12.5% | FY 2025 |
| Applied Materials Inc | $28.4 billion | 4.4% | 29.2% | 24.7% | FY 2025 |
| Texas Instruments Inc | $17.7 billion | 13.0% | 34.1% | 28.3% | FY 2025 |
| Nxp Semiconductors N.V. | $12.3 billion | -2.7% | 24.8% | 16.5% | FY 2025 |
The 8 largest of 60 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Memory Semiconductors guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Memory Semiconductors industry?
Key performance indicators for the Memory Semiconductors industry include: Bit shipments and price per bit, Gross margin, Inventory levels, Capital spending, High-bandwidth memory share. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Memory Semiconductors industry?
The Memory Semiconductors industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Memory Semiconductors industry?
The primary risks for Memory Semiconductors companies include: Boom-bust pricing, Capital intensity, Customer concentration, Export controls. Investors should assess each company's exposure to these factors and its track record of navigating them.