Micron CEO Warns of Long-Term AI Memory Shortage, Stock Drops
Micron Technology Inc.'s CEO Sanjay Mehrotra warned that the supply of memory chips for artificial intelligence applications is unlikely to meet growing demand until at least 2028. He cited long-term customer agreements as evidence that this shortage is structural rather than cyclical. Mehrotra emphasized that AI systems increasingly require high-performance, low-power memory solutions, which will drive continued demand beyond data centers into areas like autonomous vehicles and robotics. Analysts such as Daniel Newman of The Futurum Group agree with the assessment, noting a potential permanent shift in market dynamics for memory providers. However, not all experts share this view; ARK Invest founder Cathie Wood has avoided investing in memory suppliers due to concerns about long-term pricing sustainability. Despite industry efforts by companies like Samsung and SK Hynix to expand capacity, meaningful relief is unlikely before 2028.
