Micron Predicts Tight Memory Shortage Through 2028
Micron made $37.7 billion in net income for a record quarter ending September 3rd, 2026, having sold most of next year's output. The memory shortage is driving up prices across devices like the Raspberry Pi and Samsung.
Key Insights:
- Global Memory Shortage: Micron predicts tighter global memory shortage in 2027 and 2028 compared to 2026, with demand exceeding supply in both years.
- High-Bandwidth Memory (HBM): 75% of Micron’s 2027 output is already spoken for, and most of next year's HBM is sold out. Prices are "much higher" than this year's.
- Capital Spending: $25 billion is allocated for capital spending in the first half of their new financial year.
- Revenue Breakdown: DRAM revenue surged 343% to a record $39.8 billion, while NAND flash revenue grew 526% to $14.1 billion.
- Future Outlook: Micron expects an even stronger fiscal year 2027.
Impact:
Memory makers are prioritizing AI and server customers, leaving less for consumer devices. Raspberry Pi has raised prices on its models citing memory costs. Samsung has also increased prices on the Galaxy S26 range.