Micron projects NAND and DRAM shortages will continue through 2028 as AI demand sustains.

Micron said during its FY 2026 earnings call that RAM and storage chip shortages will intensify in 2027 and 2028, even as it announced a record gross margin of 86.25%. CEO and chairperson Sanjay Mehrotra stated that the company has already sold most of its capacity for next year and that customers will face higher prices compared to 2026.

"In calendar 2027 as well as 2028, we see demand exceeding supply. In fact, we see greater tightness in the industry in 2027 and in 2028 versus 2026. Overall, supply-demand environment is only getting tighter," Mehrotra said. "We do not have line of sight to when supply and demand will return to balance."

Despite the constrained market, the memory and storage industry is increasing production, with Micron projecting NAND and DRAM shipments to grow in the low-to-mid 20s percentage range over the next two years. Yet this expansion will be insufficient to meet demand, with the company expecting "the industry to remain supply constrained in both years." Manufacturers are prioritizing HBM shipments for AI data centers, which are expected to grow faster than conventional DRAM.

New manufacturing capacity is coming online across the industry, but years will pass before these facilities reach full production. Against this backdrop, Micron announced record financial guidance: $61.5 billion for FQ1 revenue with a gross margin of 86.25%, implying gross profit exceeding $53 billion. After accounting for approximately $2.06 billion in operating expenses and a tax rate of around 15.5%, the company projected earnings per share of $38.15, plus or minus $1.00, across approximately 1.15 billion shares.

These figures reflect the unprecedented capital investment flowing into AI data centers. The competition for skilled workers has intensified sharply, with memory workers at Samsung and SK Hynix receiving bonuses worth hundreds of thousands of dollars. Micron's workforce in Taiwan has threatened strikes to secure a larger share of AI-driven profits. While benefiting employees at major chip makers, the shortage has raised costs for consumers purchasing RAM and storage.