The world runs on memory chips, and according to Micron Technology CEO Sanjay Mehrotra, there simply aren't enough. During the fiscal Q1 2026 earnings call, he indicated tight supply for DRAM and NAND will persist through and beyond 2026, potentially stretching into 2027 or later.
The culprit is AI infrastructure, consuming memory at a pace manufacturers can't match. SK Hynix, another dominant producer alongside Micron and Samsung, reports being sold out through 2026. Micron executives say AI-specific memory products are fully booked.
To address this, Micron is investing $100 billion in a new megafab in Clay, New York, with groundbreaking set for January 2026. Additional facilities in Idaho are planned. However, new fabrication capacity takes three to five years to come online, meaning this investment won't ease supply pressure until the late 2020s at the earliest.
Analysts at J.P. Morgan and Morningstar project supply challenges into 2027, potentially creating sustained pricing power for memory manufacturers. With Micron, Samsung, and SK Hynix controlling the vast majority of global DRAM and NAND production, the deficit is structural.