Micron warned the memory shortage will persist well beyond the current year, projecting scarcity through 2027. The chipmaker’s fiscal third‑quarter outlook shows operating income that will surpass its all‑time full‑year revenue record, while it has signed long‑term supply contracts with 15 new customers, up from just one a quarter ago. The announcement sent Micron’s shares up nearly 16% in the coming quarter.

Rivals SK Hynix and SanDisk rallied, jumping 13% and 22% respectively, as investors priced in higher margins from tight supply. Yet the broader tech megacap index slipped, with the ten non‑memory firms over $1 trillion in market cap shedding more than 2% collectively. Companies from Nvidia to Apple face mounting component costs, prompting Apple to raise product prices between launch cycles for future product launches.

The immediate pain fuels a wave of engineering workarounds aimed at reducing dependence on volatile DRAM and NAND supplies. Designers are probing alternative memory architectures and tighter integration to stretch each chip’s capacity. If those efforts succeed, they could blunt price pressures and limit the upside for memory makers, even as current shortages keep earnings buoyant for the broader semiconductor ecosystem.