Micron warns of worsening RAM supply as CEO celebrates record earnings

Key points

• Micron’s Q4 revenue reached $54.23 billion, up from $11.32 billion a year earlier, with DRAM revenue alone jumping 343% to $39.8 billion.
• CEO Sanjay Mehrotra warned that supply conditions will worsen, citing a global shortage of high-bandwidth memory (HBM) required for AI workloads.
• The company is investing $250 billion in two new HBM campuses; the Boise, Idaho fab is scheduled to come online next year.
• Micron is the only U.S.-based maker of HBM, though it holds the smallest market share compared to South Korean rivals SK Hynix and Samsung.
• Analysts expect continued strength, with Micron guiding Q1 revenue to $61.5 billion and adjusted EPS to $38.15.

Background

Recent archive coverage highlights a broader memory crunch. Apple agreed to pay higher RAM prices starting in 2027, and Acer has forecast potential price relief by late 2027, contrasting with memory makers who predict shortages through 2030. AI server prices have already risen over 15% due to these supply constraints.

How outlets are covering it

The Register emphasizes the worsening supply situation and Mehrotra’s celebration of higher prices. CNBC focuses on the financial outperformance, noting the stock’s 500% rise and the $250 billion investment in new facilities. Yahoo Finance provides broader market context, noting chip stocks gained as Treasury yields fell, though it does not detail Micron’s specific operational metrics.

Why it matters

The shortage of HBM is a critical bottleneck for AI infrastructure. Micron’s dominance in U.S. HBM production and its massive capital expenditure signal a long-term structural shift in the memory market, likely keeping prices elevated and impacting consumer electronics costs through 2028.

What to watch

Micron expects Q1 revenue of $61.5 billion. The new Boise fab is scheduled to come online next year, while the Clay, New York campus is already under construction. The market will watch if the $250 billion investment can eventually ease the supply crunch or if prices remain high due to sustained AI demand.