Micron warns memory shortage will persist through 2028 as AI demand outpaces supply
Micron CEO Sanjay Mehrotra stated that memory supply will remain constrained through 2028, with 75% of 2027 output already sold. While the company sees opportunities in humanoid robots and self-driving cars, investors worry about cyclical peaks and margin pressure despite strong earnings.
Key points
- Micron expects supply-demand gaps to continue for at least two years, with new clean rooms opening in 2028 but production ramping slowly.
- 75% of Micron's 2027 memory output is already accounted for, with HBM prices significantly higher than 2026 levels.
- Samsung's Kim Taewoo noted HBM will consume nearly 30% of DRAM wafer capacity in 2027, up from 20% this year.
- Micron stopped selling consumer RAM in December 2025 to prioritize AI and server memory for strategic customers.
- Investors remain cautious despite strong earnings, fearing cyclical downturns and margin compression as HBM demand surges.
Background
Recent developments in robotics, including record-breaking humanoid performances at the Beijing World Humanoid Robot Games, highlight growing demand for advanced AI hardware. Micron’s focus on high-bandwidth memory (HBM) aligns with this trend, as AI applications in robotics and autonomous vehicles require substantial memory capacity.
How outlets are covering it
Ars Technica emphasizes the structural shortage, noting that manufacturing capacity is prioritized for AI and servers, limiting consumer device supply. Barron’s highlights investor concerns about cyclical peaks and margin pressure, despite Micron’s strong earnings. Yahoo Finance’s snippet suggests Micron sees future opportunities in humanoid robots and self-driving cars, aligning with the broader AI-driven demand narrative.
Why it matters
The memory shortage impacts consumer device prices and AI infrastructure costs. As HBM demand grows, it may constrain supply for other memory types, affecting industries from smartphones to autonomous vehicles. Investors must weigh short-term earnings strength against long-term cyclical risks.
What to watch
Micron plans to open new clean rooms in 2028, but production ramps will be gradual. Investors will monitor margin trends and HBM demand as Samsung and other manufacturers adjust wafer capacity allocations.
- Micron sees future opportunities in humanoid robots, self-driving cars Yahoo Finance
- Micron is about to do something that would surprise most 'Magnificent 7' investors Yahoo Finance
- Micron: It's Different This Time - Buy At 6x Earnings Before AI Agents Rerate It (MU) Seeking Alpha
- Memory executives expect RAM shortage to continue through 2028 Ars Technica
- Micron Stock Wobbles on Chip Cycle and Margin Worries. Two More Reasons to Fret. Barron's
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