Micron, a leading memory supplier, is predicting tough times for the global RAM supply. In a recent earnings report, CEO Sanjay Mehrotra emphasized that “tight industry conditions” for DRAM and NAND flash memory will likely continue through 2026, driven by a surge in AI demand.
As AI technology grows, Micron is experiencing record profits. In the latest quarter, the company reported earnings of $13.64 billion, a significant increase from $8.71 billion a year earlier. Major companies like OpenAI, Meta, Microsoft, and Google are investing heavily in data centers, fueling this growth.
Mehrotra noted that the recent push for AI data centers has dramatically increased the need for memory and storage. He warned, however, that supply will remain below demand for the foreseeable future. This shortage may impact PC shipments next year, leading to longer wait times for consumers.
To tackle the demand, Micron plans to boost its DRAM and NAND flash memory shipments by 20% next year. Despite these efforts, Mehrotra expressed disappointment at not being able to meet all customer needs across various markets.
Looking ahead, Micron will begin production at a new facility in Idaho in 2027, followed by another plant in New York in 2030. These expansions aim to support the increasing demand but still face the question of whether they can keep pace with the fast-evolving tech landscape.
Interestingly, a recent survey by Deloitte found that 86% of organizations plan to invest in AI in the coming years, indicating that the demand for memory will likely keep rising. This trend aligns with broader technological shifts, as businesses increasingly rely on AI to enhance productivity.
For more in-depth insights, Micron’s full earnings report can be found on their investor relations page.
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