Key facts
- Micron CEO Sanjay Mehrotra expects memory demand to exceed supply for at least the next two years.
- Micron's business-to-business sales of HBM for AI and DRAM for servers are driving the tight supply.
- Memory prices for 2027 are expected to be significantly higher than 2026 prices.
- 75% of Micron's memory output for 2027 is already sold out.
- Samsung predicts HBM will comprise nearly 30% of DRAM wafer capacity by 2027, up from 20% currently.
Memory supplies are expected to remain tight for at least the next two years, driven by surging demand for artificial intelligence and server applications, according to Micron CEO Sanjay Mehrotra. He told investors that demand for the company's high-bandwidth memory (HBM) and DRAM for servers will outstrip available supply.
Mehrotra indicated that memory prices for 2027 are already projected to be significantly higher than 2026 prices, with 75% of Micron's memory output for 2027 already sold out. He also noted that new manufacturing capacity, expected to come online in 2028, will only gradually ramp up production. Factors such as transitions to newer memory nodes and the increasing complexity of AI models are contributing to supply growth headwinds.
These supply constraints are also impacting the consumer electronics market, as manufacturing capacity is being prioritized for AI and server memory. This has led to increased costs for pre-built PCs, lower RAM configurations offered by OEMs, and higher prices for other gadgets like smartphones and gaming consoles.
Mehrotra's outlook is supported by comments from Samsung EVP Kim Taewoo, who stated that HBM is expected to account for nearly 30% of DRAM manufacturers' wafer capacity by 2027, a substantial increase from the current 20%. Micron's Crucial brand ceased selling RAM directly to consumers in December 2025, shifting its focus to larger, strategic customers in faster-growing segments like data centers.