Micron CEO Sanjay Mehrotra: Memory chip supply is tight, we can’t deliver enough to customers

Summary

• AI is in the very early innings, creating a structural demand shift where memory is a critical, strategic asset for inference and token processing.
• Memory supply is extremely tight across all segments: High Bandwidth Memory (HBM), non-HBM DRAM, and NAND.
• Micron is only able to supply 50% to two-thirds of its key customers' medium-term requirements, indicating a significant supply gap.
• New memory capacity has very long lead times; the earliest meaningful industry ramp is projected to start in 2028, implying tight supply will persist for years.
• Despite the AI-driven focus on HBM, non-high performance DRAM currently offers Micron higher profitability, influencing their product mix decisions.
• Micron's financial performance is surging: Q2 revenue increased by ~$10 billion from Q1, and Q3 guidance points to another ~$10 billion sequential increase, with a midpoint of ~$33.5 billion.
• The recent stock pullback is framed as noise; the fundamental cycle is not rolling over due to the early-stage, scalable nature of AI demand.
• Micron positions itself as the "invisible layer" powering AI and is among the top ten S&P 500 technology companies by revenue growth.