Michael Dell told The Wall Street Journal that the memory shortage will intensify in 2027, driven by soaring AI data center demand. Dell holds roughly $95 billion in undelivered AI server orders, the largest backlog in its history, but memory bottlenecks -- specifically high-bandwidth memory for AI accelerators and conventional DRAM for servers -- are blocking shipments. New fabrication plants take about four years to build, meaning Dell does not expect meaningful supply relief until 2029 or 2030. This outlook aligns with Micron's CEO, who warned of tighter supply in 2027 and 2028, and SK hynix's CEO, who expects the shortage to last through 2030. To cope, Dell is buying DRAM only when final assembly is near and securing long-term supply agreements.
PC buyers have felt the strain for months, with memory prices surging nearly 500% over the last year. Dell has already raised PC prices by 15-20% and is reportedly raising monitor prices as well. Industry-wide price hikes are likely if the shortage deepens next year. The CEO's comments underscore a prolonged supply crunch with no immediate end in sight.
Source: TechPowerUp News · Summarized by HeadlinesBriefing