Micron CEO Sanjay Mehrotra warned during the company's fiscal Q4 2026 earnings call on September 30 that memory and storage supply-demand conditions will be much tighter in fiscal 2027 and 2028 than they were in 2026. The remarks came as Micron reported record quarterly revenue of $54.2 billion.
"Industry demand has strengthened since our last earnings call, and we expect memory and storage supply-demand conditions to be much tighter in fiscal 2027 and 2028 than they were in 2026," Mehrotra said. He emphasized that AI is becoming super intelligent and memory enhances this intelligence and the competitiveness of customers' platforms. Despite additional industry DRAM clean room space plans and robust demand trends, including new upside requests from customers, the company has no line of sight to when supply and demand will return to balance.
Micron noted that more than 75% of its 2027 output is already committed to customers. New capacity, such as the Idaho ID2 fab, is not expected to begin wafer output until late 2028. On the consumer side, DRAM prices rose in the high-teens percent range last quarter, with NAND up about 30%.
Source: TechPowerUp News · Summarized by HeadlinesBriefing