Micron Says Robots Will Keep RAM Prices High, Even if the AI Bubble Pops
- Micron reported record fiscal fourth-quarter revenue of $54.23bn on Wednesday, nearly fivefold higher than a year earlier, driven by surging demand for memory chips across AI and data center sectors.
- Current demand for memory chips is 50% higher than supply, CEO Sanjay Mehrotra said, with the company expecting conditions to be "much tighter" than in 2026 throughout 2027 and 2028.
- DRAM revenue reached a record $39.8bn while NAND revenue hit $14.1 billion for the 14-week fiscal fourth quarter, with the cloud memory unit generating $16.28bn at an 83% margin.
- Micron expects physical AI-enabled robots to become major demand drivers, with each robot requiring around 200GB of DRAM, while memory allocation to enterprise customers limits supply for consumer devices.
- Management forecasts revenue of $61.5bn for the current quarter as Micron works with Nvidia on the industry's first custom HBM4E product, targeting a "sustained, substantial multi-decade memory demand cycle.
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The global chip shortage, which has long been driving up the prices of most electronics, will worsen in the coming years. The CEO of Micron expressed this expectation during the presentation of the annual figures. Micron is one of the largest chip manufacturers in the world.
‘No line of sight’ to the end of the memory shortage, Micron says
Micron says the global memory shortage will get tighter over the next two years. The US chipmaker reported record results on Wednesday. Revenue for the quarter to 3 September rose nearly fivefold from a year earlier, to $54.23bn, the company said. Net income reached $37.7bn, up from $3.2bn a year earlier. Gross margin hit 86.8%, […] This story continues at The Next Web
The managers of Micron and Samsung, two companies specialized in the production of RAM and storage media, announced that the current shortages would continue for at least two years.
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