Memory Chip Shortage Drives Micron Revenue to $41.45B as Prices Surge Across Generations

Micron, the largest U.S. memory chip maker, reported third-quarter earnings on June 24 that sent its shares up more than 13 percent. Revenue quadrupled to $41.45 billion compared with the same period a year ago, while profit surged from $1.88 billion to $28.2 billion year over year.

The Idaho-based company now forecasts fourth-quarter revenue between $49 billion and $51 billion. Its market capitalization has grown from about $91 billion in early 2024 to $1.2 trillion today, with shares trading at $1,048.51, up from roughly $83 two years ago.

AI demand strains supply across all DRAM generations

The shortage is not limited to the latest DDR5 memory. AI infrastructure demand is consuming advanced DRAM supply so aggressively that prices are rising across DDR4, DDR3, and even 25-year-old DDR2 memory. TechRadar Pro reported that DDR2 prices are set to more than double as the AI-driven RAM shortage cascades through older generations.

Apple CEO Tim Cook warned a week before Micron's earnings that price increases for its products are unavoidable due to the memory crunch. The shortage is expected to persist through at least 2027, according to some analysts, and Micron's CEO told financial analysts that the shortage won't even start to end until at least 2028.

• Micron inked a deal to supply AI lab Anthropic with memory and storage chips and participated in Anthropic's Series H funding round.
• IMEC, a key research partner to Nvidia, ASML, and TSMC, demonstrated two advances in ferroelectric memory that could lead to next-generation RAM and NAND replacements.
• The shortage has created a seller's market for memory manufacturers, with Micron's profit margin expanding dramatically.

Long-term outlook and next-generation memory

While the current shortage benefits Micron and other memory makers, the industry is already looking for alternatives. IMEC's ferroelectric memory research could eventually produce memory that is faster and more durable than today's DRAM and NAND, potentially easing future supply constraints. However, those technologies remain years from commercialization.

For now, the AI boom continues to drive insatiable demand for memory. Micron's participation in Anthropic's funding round signals that the company is betting on sustained growth in AI workloads. With the shortage expected to last until at least 2028, consumers and businesses should prepare for higher prices on everything from smartphones to servers.