The memory chip shortage will persist through at least 2028, allowing Micron to maintain strong pricing power and earnings growth for the next couple of years.
Too little corroboration in the last 3 days to call a trend (1 article). Watching for it to gain traction.
Industry experts forecast that memory chip shortages will persist through at least 2028, allowing suppliers like Micron to maintain elevated pricing and earnings growth. This supply constraint is expected to support margins across the memory sector for the next two years.
Persistent supply constraints in critical infrastructure components typically create a favorable pricing environment that benefits all suppliers in that segment, which can reduce competitive intensity and support margin expansion across the industry. However, this dynamic also incentivizes new entrants and accelerates customer investment in alternative solutions, which eventually erodes the advantage.
"According to some experts, the memory bottleneck will last at least until 2028. If that's the case, Micron could continue crushing broader equities for the next couple of years."