Micron executives and Samsung executives this week warned that the memory shortage will persist for at least the next couple of years, driven by insatiable demand for high-bandwidth memory (HBM) used in AI data centers.
Mehrotra said the company sees demand exceeding supply in calendar 2027 and 2028, with greater tightness than in 2026. "We do not have line of sight to when supply and demand will return to balance," he said.
The memory and storage industry is increasing production, with NAND and DRAM shipments expected to grow in the low-to-mid 20s percentage range for the next two years. However, Micron expects the industry to remain supply constrained in both years. Manufacturing capacity is prioritizing HBM for AI, limiting supply of memory for consumer devices. Micron no longer sells consumer RAM, focusing instead on business-to-business sales of HBM and server DRAM.
The company posted record financial guidance, forecasting $61.5 billion in FQ1 revenue and a gross margin of 86.25%, implying a gross profit of more than $53 billion. Earnings per share are expected at $38.15, plus or minus $1.00, on approximately 1.15 billion shares.
New factories are coming online to increase output, but it will take years before they can begin production. Meanwhile, the AI boom has led to huge bonuses for memory workers at Samsung and SK hynix, while Micron's workers in Taiwan have threatened to strike unless they receive a larger share of the AI windfall.
The shortage has already driven memory prices up sharply, and consumers are likely to face higher costs for RAM and storage in PCs and other devices as manufacturers pass on the price increases.