From Yahoo Finance · · 1m 20s
Intel CEO Warns Memory Prices Surge
Intel CEO predicts memory prices could surge 500% by 2027.
In brief
Intel CEO predicts memory prices could surge 500% by 2027. Intel CEO warns memory prices may surge 500% by 2027 due to AI demand outpacing supply. Originally reported by Yahoo Finance.
Memory Prices Surge
Micron Technology Inc. jumped more than 5% Thursday as memory stocks rallied, two days after Intel Corp. CEO Lip-Bu Tan warned that the memory shortage could worsen next year.
Intel CEO's Warning
Tan said memory chip prices have climbed between five and seven times as limited supply struggles to keep pace with AI demand, adding the bottleneck could worsen next year.
2027 Supply Concerns
SK hynix CEO Kwak Noh-jung told Reuters in July that 2027 would be the worst year in the industry's history for supply, while TrendForce estimates server DRAM contract prices rose 64% in the second half of 2025.
Micron's Profit Boost
Micron reported fiscal third-quarter revenue of $41.46 billion, up from $9.30 billion a year earlier, with non-GAAP gross margin hitting 84.9%.
2027 Price Outlook
TrendForce expects memory pricing to remain elevated in 2027 even as new supply comes online, with prices potentially reaching six times their mid-2025 level by the end of 2026.
2028 Production Timeline
Yorkville America CEO Steve Neamtz said new factories capable of easing the memory shortage may not reach full production until 2028 or 2029, leaving Micron benefiting from tight supply well beyond 2027.
The takeaway
Intel CEO warns memory prices may surge 500% by 2027 due to AI demand outpacing supply.
