Micron Technology CEO Sanjay Mehrotra warns that the current tight supply-demand dynamics for DRAM and NAND flash memory will persist well into and beyond 2026, driven by surging AI demand.
In fiscal Q1 2026, Micron posted record quarterly revenue of $13.64B, up 56% from $8.71B a year earlier. Despite this growth, customers are receiving only 50% to 66% of the memory volumes they request.
AI-related high-bandwidth memory products are fully booked for 2026, and other major manufacturer SK Hynix is also sold out of HBM for the same period. Micron plans approximately 20% growth in bit shipments for 2026, but this expansion is not expected to close the supply gap.
Analysts at J.P. Morgan and Morningstar project the shortage could extend into 2027. The three dominant memory producers-Micron, SK Hynix, and Samsung-are positioned to benefit from elevated pricing power as customers are getting half of what they order.