Micron Technology Shares Surge 5% Following Intel CEO's Warning on Memory Shortages

Micron Technology Inc. (NASDAQ: MU) saw its shares jump more than 5% on Thursday as memory stocks rallied, driven by comments from Intel Corp. (NASDAQ: INTC) Chief Executive Officer Lip-Bu Tan regarding the state of the memory market.

Tan made the remarks on Tuesday at the AI Infrastructure Summit in Santa Clara, where he stated that memory chip prices have climbed between five and seven times. He warned that the bottleneck could worsen next year.

The market reaction was swift. Micron jumped more than 5% on the news, while SK hynix Inc. (NASDAQ: SKHY) also gained about 5%. The broader Nasdaq index rose more than 1% following the Federal Reserve's decision on Wednesday.

Tan's warning echoes concerns from across the industry. SK hynix CEO Kwak Noh-jung told Reuters in July that 2027 would be the worst year in the industry’s history for supply. Meanwhile, TrendForce estimates that server DRAM contract prices rose 64% in the second half of 2025 and could climb another 270% during 2026.

Compounded, these increases would put prices at roughly six times their mid-2025 level by the end of 2026. Despite these high prices, TrendForce expects memory pricing to remain elevated in 2027 even as new supply comes online.

Micron is currently benefiting from this tight supply. In its fiscal third quarter, the company reported revenue of $41.46 billion, a significant increase from $9.30 billion a year earlier. The company guided to roughly $50 billion in fourth-quarter revenue and an 86% gross margin.

The company has secured significant contracts with strategic customers. Micron stated in June that 14 of its first 16 strategic customer agreements carried about $100 billion in minimum contracted revenue. These agreements utilize price bands designed to offer visibility through the memory cycle.

Yorkville America CEO Steve Neamtz noted that new factories capable of materially easing the shortage may not reach full production until 2028 or 2029. This timeline suggests Micron could benefit from tight supply well beyond 2027, provided demand holds steady.