Micron CEO Sanjay Mehrotra: DRAM and NAND Supply-Demand Tightness to Last Until After 2027
Micron CEO Sanjay Mehrotra stated that current demand for DRAM and NAND significantly exceeds supply, with AI computing demand driving the tight situation in the storage industry to continue beyond 2027.
The company expects supply shortages to become a structural characteristic.
Continued capital expenditure on AI infrastructure is driving memory demand, benefiting suppliers like Micron in terms of pricing power and expansion plans, making the storage segment a new bottleneck in the semiconductor supply chain.
Source: Public Information
ABAB AI Insight
Micron, as a memory giant, has previously raised AI-related guidance multiple times. The CEO's statement continues the judgment of structural shortages in HBM and DRAM, which historically have led to prolonged periods of high profits due to supply-demand mismatches in memory cycles.
On the capital front, the company is accelerating expansion and technological investment to secure downstream AI orders, shifting resources towards advanced processes, and strategically moving from cyclical commodities to core AI infrastructure.
Unlike past DRAM cycles, current AI-driven demand is more persistent, and suppliers with HBM capabilities are gaining long-term pricing power premiums.
Essentially, this represents technological substitution and capital concentration, as AI training reshapes the memory industry chain's demand for high-bandwidth memory, transferring pricing power to those with high-end capacity, and accelerating capital accumulation towards memory leaders.
ABAB News · Cognitive Law
AI computing fuels storage, and shortages equate to long-term pricing power.
Structural demand surpasses cycles; if supply cannot keep up, profit margins will be reassessed.
Infrastructure bottlenecks determine winners and losers; whoever controls memory controls the AI foundation.