Memory chip executives from Micron and Samsung expect RAM shortages to persist through 2028, driven by surging AI and server demand that diverts manufacturing capacity from consumer devices. Micron CEO Sanjay Mehrotra stated that demand will exceed supply for years, with new manufacturing facilities not coming online until 2028 and production ramping gradually thereafter.
Memory chip executives Micron and Samsung predict RAM shortages will persist through at least 2028, driven by surging demand for AI and server memory that is consuming manufacturing capacity. Micron CEO Sanjay Mehrotra noted that even new production facilities opening in 2028 will take time to ramp up, while 75% of the company's 2027 output is already committed.
Micron's strong earnings reveal a structural memory shortage lasting through 2027-28, driven by long-term customer contracts and prepayments rather than spot demand. Despite massive AI capex investments across the industry, hardware capacity remains constrained by supply bottlenecks, with production commitments already covering most near-term output.
Sony has implemented a lottery system based on player playtime to allocate PlayStation 5 Pro consoles amid supply shortages.
Sony Japan has implemented a lottery system and purchase restrictions for the PS5 Pro console ahead of Grand Theft Auto 6's November launch, limiting sales to active PlayStation users with at least 60 hours of playtime. The shortage reflects surging demand as players rush to upgrade hardware before the game's release, with standard PS5 models remaining in stock.
A trader discusses Micron Technology's valuation at 6.7x earnings, questioning whether the market fully accounts for long-term supply agreements, anticipated DRAM shortages in 2027, increased HBM4E wafer consumption, and continued hyperscaler capital expenditure growth through 2028.