CJ Muse, a semiconductor analyst at Cantor Fitzgerald, said that memory supply will become tighter in 2027 [1].
This projection suggests that memory chip manufacturers may gain significant pricing power as demand continues to outpace production. Such a market dynamic could sustain high earnings for industry leaders like Micron Technology through 2028 [1].
Speaking during CNBC’s ‘Squawk on the Street’ broadcast, Muse said the potential financial impact of the projected shortage [1]. He said, "We see a memory supply squeeze tightening in 2027 that could power Micron’s earnings through 2028" [2].
The analyst highlighted a specific optimistic scenario for the company's valuation. Muse said that the tighter supply could support a $200 per share earnings-per-share (EPS) bull case for Micron [3]. He said that the company is currently trading at about five times earnings [3].
Beyond Micron, the broader market trends reflect aggressive growth in specialized sectors. Data from the sector shows SanDisk revenue growth at 251 percent [3]. Furthermore, SanDisk datacenter sales have seen an increase of 645 percent [3].
These figures underscore a wider trend where the infrastructure required for modern computing and artificial intelligence is consuming available memory capacity faster than it can be manufactured. The resulting scarcity typically allows suppliers to raise prices, which directly boosts the bottom line for chipmakers [1].
“We see a memory supply squeeze tightening in 2027 that could power Micron’s earnings through 2028.”
The projected memory squeeze reflects a critical bottleneck in the global semiconductor supply chain. If demand continues to outstrip supply through 2027, Micron and its competitors will likely see expanded profit margins due to increased pricing leverage. This suggests that the growth of data-heavy technologies is creating a long-term structural deficit in memory availability.
