Memory squeeze set to tighten through 2028, Micron says
Memory prices will stay elevated through 2028. Micron just locked in 75% of 2027 output. CIOs need to act now.
Why it matters
Micron's earnings reveal a multi-year memory shortage that will force enterprises to stretch hardware lifecycles, right-size workloads, and lock in multiyear pricing deals—or pay significantly higher costs. Supply-demand rebalance has slipped to 2029 or beyond.
The key facts
8 to knowMicron CEO: memory/storage shortage will 'get much tighter' in 2027–2028; no visibility to supply-demand rebalance
DRAM prices rose high-teens percentage in fiscal Q4; NAND rose ~30%
TrendForce: DRAM contract prices forecast +10–15% Q4 2026; NAND +15–20%
Micron has already committed >75% of 2027 output; customer discussions now focus on 2028
Strategic customer agreements (multiyear, take-or-pay contracts) lock pricing; cloud providers with deals insulate themselves; others absorb cost increases
IDC: average PC selling prices rise 17% in 2026
Cloud providers and OEMs shifting from 96GB/128GB to 32GB/64GB server memory modules since H1 2026 due to cost/availability constraints
Counterpoint Research: CIOs should secure multiyear pricing; stretching PC lifecycles 3→5 years acceptable for back-office but risky for core infrastructure; DDR4 no longer cheap or plentiful due to conversion to DDR5/HBM
Go to the source
Computerworldcomputerworld.com
Publisher excerpt: The global memory shortage that has driven up the cost of servers, storage and PCs through 2026 will get worse in 2027 and 2028, according to memory maker Micron Technology. “We expect memory and storage supply-demand conditions to be much tighter in calendar 2027 and 2028 than they were in 2026,”…