Micron CEO Sanjay Mehrotra told analysts during the company's fiscal Q4 2026 earnings call that memory and storage supply-demand conditions will be much tighter in fiscal 2027 and 2028 than they were in 2026. The call followed Micron's report of record quarterly revenue of $54.2 billion, reflecting strengthened industry demand that Mehrotra said has grown since the last earnings report.
Mehrotra pointed to AI becoming super intelligent as a key driver, noting that memory enhances this intelligence and the competitiveness of customers' platforms. He said more than 75% of Micron's 2027 output is already committed to customers, leaving little near-term availability for new orders. On the consumer side, DRAM prices rose in the high-teens percent range last quarter while NAND increased about 30%, underscoring the tightening market.
Despite plans for additional industry DRAM cleanroom space, Mehrotra said there is still no line of sight to when supply and demand will return to balance. He added that even with those expansion plans, relief is not close, noting that Micron's Idaho ID2 fab is only expected to start wafer output in late 2028, meaning new capacity will take time to materialize. The CEO's comments suggest that the memory market will remain constrained for several years, with AI-driven demand continuing to outpace supply growth even as manufacturers invest in new capacity.