Micron CEO predicts tighter memory supply in 2027 and 2028

Micron reported record quarterly revenue of $54.2 billion for its fiscal fourth quarter of 2026 and, during the earnings call on September 30, CEO Sanjay Mehrotra warned that the industry’s memory and storage supply is expected to become much tighter in 2027 and 2028 compared with the current year. He attributed the outlook to sustained high demand from data-center operators and the rollout of artificial-intelligence workloads, which are driving larger memory footprints.

Mehrotra noted that while the company and other major DRAM manufacturers are expanding capacity, the pace of demand growth is outstripping new production. He said Micron is investing in additional fab capacity and advanced process technologies to mitigate the shortage, but cautioned that the market will remain constrained for the next two years.

Analysts have pointed to long-term supply contracts and the need for substantial capital spending as factors that could limit the speed at which new capacity comes online. The broader industry is also seeing increased investment from rivals such as SK Hynix and emerging players, but the overall supply-demand gap is expected to persist.

"We expect the memory market to be much tighter in 2027 and 2028 than it is today," Mehrotra said during the call.

The comments have sparked a wave of discussion among consumers and industry observers, with some expressing concern over rising prices and potential impacts on personal-computer and gaming markets.