Micron CEO Confirms Memory Shortage Will Persist Through 2028

Key points

• Micron CEO Sanjay Mehrotra told investors that demand for memory will exceed supply for at least the next two years, with new clean rooms not opening until 2028.
• Seventy-five percent of Micron’s 2027 memory output is already accounted for, and current sales discussions are primarily focused on 2028 contracts.
• Samsung executive Kim Taewoo reported that high-bandwidth memory (HBM) will account for nearly 30% of DRAM manufacturers’ wafer capacity in 2027, up from 20% in 2026.
• Micron’s Crucial brand ceased consumer RAM sales in December 2025 to prioritize AI and server memory, a move that has raised prices for prebuilt PCs and other gadgets.
• Mehrotra noted that HBM prices for 2027 are significantly higher than 2026 levels, driven by growing demand for larger AI models and enterprise concurrency.

Background

Micron’s stock recently surpassed $1,000, reaching $1,087.40, with a market cap of $1.228 trillion. Earlier reports indicated the stock had surged 552% over the past year, driven by AI infrastructure demand. Analysts have debated whether the valuation is justified by a persistent supply shortage or if it is overextended, with some forecasting the stock could exceed $2,000 by 2027 if current trends continue.

How outlets are covering it

Ars Technica highlights the long-term nature of the shortage, citing Mehrotra’s comments that supply will remain tight even after new clean rooms open in 2028 due to gradual production ramps and node transitions. Yahoo Finance focuses on the immediate market reaction, noting Micron’s stock rose 4% to $1,087.40, reflecting investor confidence in the sustained demand for AI memory. Both sources agree that the shift toward HBM is limiting consumer memory supply, but Ars Technica emphasizes the structural constraints of manufacturing, while Yahoo Finance highlights the financial implications for Micron’s valuation.

Why it matters

The confirmed shortage through 2028 will likely keep memory prices elevated, affecting costs for AI data centers, prebuilt PCs, and consumer electronics. Micron’s decision to exit the consumer RAM market signals a strategic pivot toward high-margin AI segments, which could reshape the memory industry’s supply chain dynamics.

What to watch

Investors will watch Micron’s upcoming earnings to assess whether the sustained shortage justifies its current valuation. The company’s new clean rooms are expected to open in 2028, but production ramps will be gradual. Samsung’s increased HBM capacity allocation may further limit consumer DRAM supply, potentially driving up prices for consumer devices.