Why is demand for memory chips increasing?

Demand for memory chips is surging due to the rapid growth of artificial intelligence, which requires significant computational power. The chip shortage has driven up prices and boosted revenues for manufacturers like Micron.

What results did Micron report in its latest earnings?

In the third quarter, Micron’s revenue quadrupled to $41.45 billion, while net profit reached $28.2 billion. The company also forecasts continued revenue growth in the next quarter.

What are the prospects for the memory chip market?

Analysts expect the memory chip shortage to persist at least until 2027 due to rising demand for AI solutions, sustaining high prices and profitability for manufacturers.

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Hardware

How Memory Chip Shortage Made Micron an AI Market Leader

June 24, 2026

Photo: TechCrunch

Quick answer

US-based Micron, the largest memory chip manufacturer in America, capitalized on the AI chip shortage, quadrupling its revenue to $41.45 billion and boosting net profit to $28.2 billion in a single quarter.

The artificial intelligence boom has triggered a severe shortage of memory chips, essential for training and operating AI models. Experts have dubbed this situation "RAMageddon," leading to higher prices for components and end devices. Apple CEO Tim Cook recently warned of inevitable price increases for the company’s products due to rising component costs.

While many tech giants faced challenges, US manufacturer Micron delivered impressive financial results. In the third quarter, the company’s revenue quadrupled year-over-year to $41.45 billion. Net profit surged from $1.88 billion to $28.2 billion, marking a record for the company.

Micron’s 13% stock surge following the earnings report reflects investor confidence in the company’s prospects. Its market capitalization exceeded $1.2 trillion, with shares rising from $83 at the start of 2024 to $1048.51 at market close. The report also includes an optimistic forecast, projecting fourth-quarter revenue between $49 billion and $51 billion.

Micron is not only expanding production but also investing in partnerships with key AI market players. The company secured a deal to supply memory chips and storage solutions to Anthropic’s lab and participated in its latest funding round, though the investment amount remains undisclosed.

Common questions

Why is demand for memory chips increasing?: Demand for memory chips is surging due to the rapid growth of artificial intelligence, which requires significant computational power. The chip shortage has driven up prices and boosted revenues for manufacturers like Micron.
What results did Micron report in its latest earnings?: In the third quarter, Micron’s revenue quadrupled to $41.45 billion, while net profit reached $28.2 billion. The company also forecasts continued revenue growth in the next quarter.
What are the prospects for the memory chip market?: Analysts expect the memory chip shortage to persist at least until 2027 due to rising demand for AI solutions, sustaining high prices and profitability for manufacturers.

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