Memory supply is getting squeezed hard — and it's not easing up anytime soon.
Team Group GM Gerry Chen just said there's "zero risk of memory prices dropping." That's not marketing spin. Here's what's actually happening:
🔹 Memory module makers are being told their 2027 allocations could be slashed by 50% or more vs. 2026
🔹 Upstream fabs have sold out nearly all 2027–2028 capacity already
🔹 DDR5 supply is expected to come in under 80% of prior forecasts
🔹 Prices could keep climbing 20–30% quarter-over-quarter into 2027
Even $MU's new MegaFab won't come online until Q4 2027 at the earliest — and orders for 2028–2029 are already fully booked.
So if you're still hearing "AI buildout is slowing down," the memory market is screaming the opposite. Sharply lower allocations, fully booked capacity through 2029, and structurally higher pricing ahead.
This setup favors $MU and $SKHY in a big way. Supply constraints + strong AI demand = pricing power that lasts longer than most expect.
Team Group GM Gerry Chen just said there's "zero risk of memory prices dropping." That's not marketing spin. Here's what's actually happening:
🔹 Memory module makers are being told their 2027 allocations could be slashed by 50% or more vs. 2026
🔹 Upstream fabs have sold out nearly all 2027–2028 capacity already
🔹 DDR5 supply is expected to come in under 80% of prior forecasts
🔹 Prices could keep climbing 20–30% quarter-over-quarter into 2027
Even $MU's new MegaFab won't come online until Q4 2027 at the earliest — and orders for 2028–2029 are already fully booked.
So if you're still hearing "AI buildout is slowing down," the memory market is screaming the opposite. Sharply lower allocations, fully booked capacity through 2029, and structurally higher pricing ahead.
This setup favors $MU and $SKHY in a big way. Supply constraints + strong AI demand = pricing power that lasts longer than most expect.
