Micron CEO: AI is Still in Early Stages, Storage Supply Remains Tight
If you're waiting for storage product prices to drop, Micron CEO Sanjay Mehrotra's latest statements may disappoint you. He believes that price reductions are unlikely in the short term, and the market is still far from returning to normal. Mehrotra pointed out in an interview that the current AI wave is still in its early stages. With the rise of AI assistants, faster and larger capacity storage devices have become strategic assets to support AI's full potential. This surge in demand has fundamentally changed the supply and demand structure of the storage market.
The AI inference side is experiencing a turning point, and the expansion of Token generation demand is placing unprecedentedly high requirements on the speed and capacity of memory.
Currently, the entire storage industry is facing an extremely tight supply situation, and due to technical barriers and equipment limitations, increasing production capacity cannot be achieved in a short period of time.
The CEO further explained that the core problem currently plaguing the industry is not market demand or pricing strategies, but rather a capacity gap that suppliers simply cannot solve.
This situation of supply exceeding demand will not improve in the near future, and may even worsen, and this tension is already directly reflected in the company's financial performance.
Micron predicts that AI's demand for DRAM and NAND flash memory is expected to exceed half of the industry's total market size this year. This means that more than half of storage resources will be occupied by AI-related businesses, and the share left for the general consumer electronics market will be severely squeezed.
Affected by the double blow of limited supply and rising prices, personal computer and mobile device sales are expected to decline by double digits.
However, for high-end PCs that can run AI workflows, 32GB of large-capacity memory has gradually become the mainstream configuration choice in the current market.
In the AI era, memory is no longer just a component, but the most important strategic asset in the hands of customers.
To cope with growing demand, Micron is continuously increasing its investment in global manufacturing bases and expects to refresh multiple performance records again in the upcoming third fiscal quarter.