Micron warns RAM shortages will persist through 2028 as AI demand outstrips supply
Micron Technology CEO Sanjay Mehrotra told investors that global DRAM shortages will continue through 2028, with most of next year's production already sold. The company plans $25 billion of capital spending to bring new factories online in 2028, but new capacity will not immediately ease pricing pressure. Bank of America raised Micron’s 2027‑2028 revenue and earnings forecasts, citing long‑term customer agreements and the ongoing shortage. Samsung expects high‑bandwidth memory to use about 30 % of DRAM wafer capacity by 2027.
Why it matters
Bank of America’s upward revisions suggest higher revenue and earnings potential for Micron despite tight supply (the bank says). The prolonged shortage may keep memory prices elevated, affecting costs for consumer electronics and data‑center operators.
Key facts
- 1CEO Sanjay Mehrotra warned that RAM supply‑demand balance will remain tight through 2028. eurogamer.net
- 2Micron plans $25 billion in capex to bring new factories online in 2028. eurogamer.net
- 3Cloud memory unit posted an 83 % gross margin in Q4, up from 59 % a year earlier. eurogamer.net
- 4Datacenter business margin reached 90 % in Q4, up from 41 % a year earlier. eurogamer.net
- 5Datacenter SSD sales were almost $10 billion for the quarter, over 1,000 % higher year‑on‑year. eurogamer.net
- 6Bank of America raised Micron’s FY2027 revenue forecast to $275.4 billion and FY2028 to $317 billion. suaragarut.id
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.