Micron, one of the world’s three largest memory suppliers, warned that «challenging industry conditions» for DRAM and NAND flash memory will persist in 2026 and «beyond,» with AI technologies driving demand.
Micron, one of the world’s three largest memory suppliers, warned that «challenging industry conditions» for DRAM and NAND flash memory will persist in 2026 and «beyond,» with AI technologies driving demand.
With the rise of artificial intelligence, Micron is making more money than ever as companies like OpenAI, Meta, Microsoft, and Google fill their data centers with powerful chips equipped with high-bandwidth memory (HBM), The Verge reports.
The global RAM market is currently experiencing an unprecedented crisis, caused by the explosive demand for artificial intelligence chips. DRAM prices have increased by 171,8% in a year and have even exceeded the growth rate of the value of gold. A 64GB DDR5 memory kit already costs over $500 — more expensive than a PlayStation 5 game console.
Micron reported record revenue of $13.64 billion last quarter, up from $8.71 billion in the same period last year. The company also announced its decision to exit the Crucial brand. Instead of selling RAM and storage to consumers, it will focus on AI data centers. The demand for them has left companies with fewer resources for DRAM in PCs, smartphones, smart TVs and even cars.
«Over the past few months, our customers’ plans to build AI-powered data centers have led to a sharp increase in projected demand for memory and storage. Supply will lag significantly behind demand for the foreseeable future,» Micron said in a financial report, warning that this will affect PC shipments next year.
Micron is looking to ramp up production and expects to increase DRAM and NAND flash shipments by 20% next year, but that’s still not enough to meet demand.
