Micron Sees Memory Tightness Lasting Beyond 2026 as Customers Fill Only 60% of Needs
Updated
Updated · The Motley Fool · May 30
Micron Sees Memory Tightness Lasting Beyond 2026 as Customers Fill Only 60% of Needs
5 articles · Updated · The Motley Fool · May 30
Micron executive Manish Bhatia said the company’s outlook has improved since March and that tight supply across DRAM, HBM and NAND will persist well beyond 2026.
About 60% of some customers’ memory needs are currently being met, he said, reinforcing Micron’s view that the supply-demand gap is structural rather than cyclical.
Micron in March guided for fiscal third-quarter revenue of $32.75 billion to $34.25 billion and adjusted EPS of $18.75 to $19.55; Wall Street now expects $33.7 billion and $19.21 ahead of the June 24 report.
Nvidia CFO Collette Kress said the company anticipated memory price spikes and ordered supply long ago, adding that Nvidia is working with suppliers on future products.
Micron’s latest quarter showed the scale of the boom, with revenue nearly tripling to $23.8 billion and net income rising almost tenfold to $13.8 billion as AI demand fuels a broader memory supercycle.
Can the AI 'supercycle' outlast the massive new fabs being built to end the global memory shortage?
Is Micron's historic surge the peak of a bubble or the start of a new valuation era for memory stocks?
As AI giants consume all memory, how will other industries survive the prolonged chip famine and soaring costs?