Micron warns that the global memory crunch is set to intensify until at least 2028, driven by rising AI and datacentre demand, with consumer markets bearing the brunt of ongoing supply constraints and price increases.
Micron has given the clearest sign yet that the global memory crunch is not abating, telling investors that most of its next year of output is already spoken for and that pricing pressure is likely to persist well into 2027 and 2028. According to The Register, chief executive Sanjay Mehrotra said the balance between supply and demand in the memory market was becoming tighter, not looser, and that the company could not yet see a point at which conditions would normalise. Ars Technica reported that his remarks reflected Micron’s business-to-business memory sales rather than consumer RAM directly, but the implications are still broad for the wider hardware market.
The core problem is that manufacturing capacity is being pulled towards high-bandwidth memory, or HBM, which is used in AI systems and datacentres. Micron and Samsung have both indicated that AI-related demand is consuming a growing share of their available output, leaving less capacity for standard DRAM and other memory products. PC Gamer and Ars Technica both reported that this shortage is expected to continue through at least the next couple of years, with Mehrotra warning that supply will struggle to keep pace because new clean rooms and fabrication facilities take a long time to build and ramp up.
That squeeze is already feeding into higher prices across consumer technology. The original reporting linked the memory shortage to repeated price rises on consoles and other electronics that depend on the same chips, while Tom’s Guide noted that the problem is also affecting laptops, desktops, SSDs and custom PC systems. In practical terms, the pressure comes from the fact that the biggest memory makers are prioritising the highest-margin data-centre business, which leaves less room for the consumer channels that supply gaming hardware and mainstream PCs.
Micron is still investing heavily in new capacity, but the company says that relief will not come quickly. Tom’s Hardware reported that Micron is planning large capital expenditure and expects to bring additional factories online in 2028, yet executives cautioned that this will not immediately ease availability or pricing. The same report said the company is forecasting strong revenue growth despite the shortage, a sign that tight supply is supporting both margins and demand for whatever capacity Micron can produce.
The financial results underline how profitable the shortage has become for the memory industry. Tom’s Hardware reported record gross margins for Micron, while the company’s cloud memory unit and core datacentre business both posted much stronger profitability than a year earlier. The firm also highlighted work with Nvidia on custom HBM4E for next-generation GPUs and said AI workloads are expanding demand for NAND-based storage as well as DRAM. Even so, the broader message from Micron, Samsung and other industry watchers is that the memory market is now being shaped by AI demand on a scale that could keep consumer prices elevated for years.
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