Micron Says RAM Shortage Will Persist Through 2028

Micron warned that the global shortage of RAM and storage chips driven by artificial intelligence demand will intensify through 2028, the company said while reporting its fiscal 2026 results. The chipmaker told investors it expects shortages to peak across 2027 and 2028.

Micron said customers should expect to pay substantially higher prices in the coming years compared with 2026 as supply tightens. Heavy investment in AI datacenters has pushed manufacturers to prioritize high-bandwidth memory known as HBM, disrupting the supply chain for standard DRAM chips.

The company reported an unprecedented gross margin of 86.25 percent as supply constraints tightened, and said next year’s production capacity is almost entirely presold.

Chief executive Sanjay Mehrotra was explicit about the outlook: "In 2027 and also 2028, demand will exceed supply. In fact, we will see more constraints in the industry during 2027 and 2028 compared with 2026. Overall, the supply-demand balance will be tighter. We do not have a clear view of when supply and demand will return to balance."

Growth forecasts and financial guidance

Micron projects that NAND and DRAM supply will grow at roughly 20 to 25 percent annually over the next two years, but the company said that increase will not satisfy a market hungry for memory and storage technology.

For the first quarter of its fiscal year, Micron estimated revenue of $61.5 billion, which the company said corresponds to more than $53 billion in gross profit and net income of $38.15 per share.

The rising demand has also created labor tensions. Micron’s Taiwanese staff have pressed for higher bonuses and pay, following similar moves by employees at Samsung and SK Hynix.

Micron’s view contrasts with an earlier analysis from Acer, which had predicted computer prices would fall in late 2027 as Chinese-made chips entered the market.