Memory: "Micron closed a key part of its business and warned that, as a result, DRAM shortages may persist for several years."

From The Street, January 14:

Micron sends hard-nosed message after controversial decision

The company’s controversial pivot meets a blunt reality check on how supply issues will impact consumers. 

Micron (MU) apparently has little interest in softening the blow for consumers after its shocking decision to close down Crucial. One of its executives warned that DRAM shortages could stretch through 2028, as the business continues to aggressively pursue AI and enterprise customers.

I guess you’d never really feel the pain until it hits home. Last week, I decided to upgrade my PlayStation 5 storage ahead of big releases this year, such as Grand Theft Auto 6.

I planned to finally pick up a 1TB PCIe 4.0 NVMe M.2 SSD with a heatsink, after putting off the purchase since mid-last year.

To my surprise, it felt substantially pricier than when I last saw it listed on Amazon, compelling me to run a quick check.

When I checked the price, it was sitting at a record high of around $142, nearly 50% higher than the last time I looked.

That’s an insane jump, and after having covered Micron multiple times over the past few weeks, I understand what’s actually happening now.

Naturally, the acute demand/supply imbalance in memory has effectively supercharged Micron stock.

To put things in perspective, Micron stock is up an eye-popping 167% in the past six months, while the S&P delivered a 10% gain. It ended last year with a jaw-dropping 250% gain.

For more color, here’s a sharp take from TheStreet tech expert Vuk Zdinjak.

The PC market is doomed to high prices for the next two to three years. The worst part is that

even if the AI bubble bursts, it is highly unlikely that it will result in price cuts in the same period. 

Though Micron executive Christopher Moore pushed back on that notion in a WCCFTech interview, I concur with Zdinjak that the writing’s pretty much on the wall.

Micron and peers are betting big on AI’s long-term growth, and consumers will have to contend with higher prices and tighter supply for the foreseeable future....

....MUCH MORE