Micron says memory chip supply will stay tight past 2027

Micron Technology reported fiscal third-quarter revenue and earnings above analyst estimates on Wednesday. Executives said artificial-intelligence demand will keep memory-chip supply constrained beyond calendar 2027. The company also said it expects non-GAAP gross margins on new customer contracts to exceed the 84.9 percent recorded in the third quarter.

Officials declined to provide specific pricing figures during the earnings call.

Supply outlook Executives stated that industry supply is expected to improve gradually in 2028 but will still fall short of demand. They added that tight market conditions are projected to continue past 2027 due to sustained AI-driven orders. Micron shares rose in after-hours trading following the report.

Market reaction The comments come after a sell-off in chip stocks earlier in the week tied to concerns about demand in South Korea. A senior managing director at Virtus Investment Partners said the market reacted to remarks from SK Hynix suggesting a possible slowdown.