Micron CEO Warns of Ongoing Global Memory Shortage Driven by AI Demand Until 2028

The persistent memory shortage will impact pricing and availability across multiple sectors, from data centers to consumer electronics.

• Micron's CEO announced that memory supply shortages will continue through 2028, driven by AI demand.
• Over 75% of Micron's 2027 output is already committed, indicating a tight supply landscape.
• Samsung corroborated that high-bandwidth memory (HBM) will consume a larger share of DRAM capacity, further constraining consumer-grade memory.

• Surging AI demand has outpaced memory supply growth since at least 2025, leading to significant shortages.
• Micron shifted focus away from consumer RAM sales to prioritize data center customers, reflecting industry trends.
• New manufacturing capacity is expected, but gradual production ramps and shifting product mixes will delay relief.

The global memory shortage is primarily driven by the explosive growth in artificial intelligence applications, which require vast amounts of high-bandwidth memory (HBM) and dynamic random-access memory (DRAM). As AI technologies advance, the demand for memory in training and inference workloads has surged, outpacing supply growth since at least 2025. This imbalance has prompted Micron Technology to pivot its business strategy, exiting direct consumer RAM sales through its Crucial brand in December 2025 to focus on data center clients, where demand is more predictable and lucrative.

During Micron's fiscal fourth-quarter earnings call on October 1, 2026, CEO Sanjay Mehrotra revealed that over 75% of the company's memory output for 2027 was already committed to customers, with discussions increasingly focused on 2028. This indicates a significant supply constraint, as the company struggles to meet the soaring demand. The situation is exacerbated by Samsung's announcement that HBM will consume nearly 30% of DRAM wafer capacity in 2027, up from 20% in 2026, further limiting the availability of consumer-grade DRAM.

Manufacturers are facing challenges in ramping up production due to extended timelines for fab construction and limited productivity gains from new process nodes. New clean rooms planned for 2028 will not provide immediate relief, as production ramps are gradual and product mixes are shifting towards AI-related products. This means that while new capacity is on the horizon, it will not be sufficient to balance supply and demand in the near term.

As a result, market analysts are predicting continued price elevation for DRAM and NAND into 2027. Original Equipment Manufacturers (OEMs) are adjusting product configurations and raising prices to cope with the increased costs of memory. The lack of a clear timeline for achieving a balance between supply and demand means that consumers will likely face reduced RAM configurations in devices and higher overall gadget costs.

• Tech companies: Struggling to secure memory for AI applications, leading to project delays.
• Data centers: Facing increased operational costs and potential service limitations due to memory shortages.
• Consumers: Experiencing higher prices for electronics like PCs, smartphones, and gaming consoles.
• Retailers: Dealing with limited inventory and increased costs, affecting pricing strategies.
• Importers in Dubai: Facing elevated prices for consumer electronics due to global memory cost increases.

• Price trends for DRAM and NAND: Monitoring these will indicate how the shortage is affecting consumer electronics pricing.
• New manufacturing capacity announcements: Any updates on new fabs or clean rooms could signal potential relief in supply.
• OEM product configurations: Changes in product offerings may reflect how companies are adapting to memory constraints.