Micron warns of RAM shortages through 2028 and $25 billion capex
Micron says the memory market will stay tight through 2027 and possibly 2028, while it plans $25 billion in capex.
- CEO Sanjay Mehrotra says the memory market is “only getting tighter” and customers should expect higher prices than in 2026.
- The company expects new capacity in 2028, but the source says there will be no immediate relief for prices or availability.
What happened
Micron Technology has warned investors during an earnings call that the memory market remains tight. According to comments cited by Eurogamer, the company does not expect supply and demand to rebalance in the short term, while the current shortage is already affecting the RAM market and other memory chips.
CEO Sanjay Mehrotra said the balance between supply and demand is “only getting tighter.” He also suggested customers should prepare for prices that are higher than in 2026, and that demand could continue to outstrip supply into 2027 and even 2028.
A major reason, according to the source, is strong demand for high-bandwidth memory (HBM) used in AI data centers. That is pulling a large share of available capacity toward those applications, leaving less room for consumer memory. The source also says rising memory prices are already affecting consumer electronics, including game consoles such as the PlayStation 5, Xbox Series X/S, and Switch 2.
Micron says it plans to bring new fabs online in 2028 and is budgeting $25 billion in capex for the first half of the new fiscal year. At the same time, executives reportedly warned that the extra capacity will not bring immediate relief.
Timeline
2026-10-03: Eurogamer publishes a report on Micron’s warning about ongoing RAM shortages and AI-driven demand.
2026: According to Mehrotra, customers should expect prices higher than in 2026.
2027: Micron says supply and demand may still not be in balance.
2028: Micron expects new fabs to come online and additional capacity to become available.
First half of the new fiscal year: Micron plans $25 billion in capex.
Background
The core issue, based on the information provided, is not only demand for standard DRAM but especially the rapid growth of HBM for AI infrastructure. Mehrotra also said HBM demand is growing faster than the DRAM used in servers, which further increases pressure on the overall memory market.
The source does not specify how much of Micron’s capacity will go to HBM or which product categories the company means by “next year's production.” It is also not specified to what extent the price increases are directly attributable to Micron versus broader market trends.