Micron says memory shortages are here for the foreseeable future

Memory-maker Micron Technology has predicted that RAM shortages are here to stay, meaning higher prices for servers probably are, too.

As The Register has previously reported, memory-makers are shifting production to the high-bandwidth memory needed for AI applications, which they can sell for fat profits. That move means they’ve reduced production of other forms of memory even as the AI boom also creates demand for servers. The result is higher memory prices, leading major server-makers to warn that the prices they charge will have to rise by up to 15 percent.

In its Q1 2026 earnings announcement on Wednesday, Micron suggested this is the new normal.

“Over the last few months, our customers' AI data center build-out plans have driven a sharp increase in demand forecast for memory and storage,” CEO Sanjay Mehrotra told investors. “We believe that the aggregate industry supply will remain substantially short of the demand ...