Observed Signal · May 5, 2026 · Executive Statement · Source: t3n · Impact: 3/5 · Sentiment: Negative
Micron CEO: RAM shortage could last years
Micron CEO Sanjay Mehrotra warned that the global memory (RAM) shortage could persist for years as artificial intelligence workloads — still in their early stages, he said — drive growing demand for larger and faster memory. Micron reported a record second-quarter revenue driven by AI demand, but Mehrotra cautioned production capacity cannot be increased quickly. Other major memory suppliers echoed the outlook: Samsung warned of significant supply constraints through at least 2028, while SK Hynix suggested effects could last until around 2030. The comments were reported in an interview and referenced by technology outlets; the article was published on 2026-05-05.
Major memory manufacturers warn prolonged RAM shortages driven by AI demand; sustained supply constraints could increase costs and limit capacity for AI inference and data-center workloads, affecting technology infrastructure across industries.
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Key Takeaways & Evidence Grounding
- Sanjay Mehrotra, CEO of Micron, said AI is in its early stages and will require more and faster memory.
- Micron posted record second-quarter revenue, attributed in part to AI-driven demand for memory.
- Mehrotra stated memory production capacities cannot be ramped up easily or quickly.
- Samsung warned of significant memory product shortages likely lasting at least until 2028.
- SK Hynix suggested the aftereffects of the memory shortage could continue possibly until 2030.
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Memory chip makers signal multi-year tight supply
Top memory-chip manufacturers reported strong demand and upbeat financials driven by artificial-intelligence workloads. Micron delivered revenue and earnings well above expectations and guided to roughly 80% gross margins next quarter, yet its stock fell on investor concerns about the sustainability of peak profits. Micron said key customers are receiving only half to two‑thirds of requested memory and announced its first five‑year strategic customer agreement. Samsung is discussing three‑ to five‑year memory contracts, and SK Group chair Chey Tae‑won warned the global memory shortage could extend toward the end of the decade. Analysts have raised price targets on Micron and companies are ramping capex (Micron signalled at least $25 billion this fiscal year; Samsung raised chip production spending to $73 billion), prompting debate over how long the upcycle will last and when supply investments will ease tightness.
Samsung Warns Memory Crunch Will Worsen Into 2027
Samsung's memory division warned that surging demand and pre-orders are deepening a memory chip and storage shortage that could extend into 2027, constraining supply and raising costs for AI infrastructure buildouts. Executives from Samsung, Apple and Alphabet highlighted memory cost pressures during recent earnings calls; Meta has reportedly extended server lifecycles due to shortages. Wall Street sees the supply squeeze as a tailwind for chip and storage vendors — notably Micron, SK Hynix, Samsung Electronics, Sandisk, Seagate and Western Digital — and analysts expect increased capital expenditure and memory-equipment demand as hyperscalers expand AI capacity. Analysts from Wolfe Research, Bernstein, Melius and JPMorgan cited elevated memory average selling prices, testing-equipment upside, and persistent supply-demand gaps as drivers for sector revenues and investor interest.
Micron CEO Blames Pricing Pressure for Memory Shortage
Micron CEO Sanjay Mehrotra told CNBC that customers’ aggressive price demands in recent years contributed to underinvestment across the memory industry, exacerbating current shortages as AI-driven demand surged. He said industry prices collapsed in 2023, pushing many memory suppliers into negative gross margins and reducing capacity investments. Micron continued to invest through the downturn, though capex fell in fiscal 2023. Mehrotra expects tight memory supplies to persist beyond 2027, and said Micron is investing roughly $200 billion in manufacturing and R&D, including new fabs in Boise, Idaho and Syracuse, New York, with the Boise fab’s first chips due in mid‑next year.
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