Quick Read
Micron (MU) reported Q2 2026 revenue of $23.86B and EPS of $12.20, crushing guidance, as its Cloud Memory Business Unit generated $5.284B in revenue at a 66% gross margin while the company can only meet 50-67% of customer demand for HBM and DRAM chips. CEO Sanjay Mehrotra announced a $200B investment to expand US production capacity across three facilities, targeting 40% domestic manufacturing by 2036 and creating 90,000 high-paying jobs.
Micron claims the memory chip shortage is structural, not cyclical, because meaningful new industry supply doesn’t arrive until 2028, giving the company two more years of pricing power before capacity additions from competitors begin ramping production.
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Micron Technology (NASDAQ:MU) CEO Sanjay Mehrotra used a Bloomberg interview from the company’s Manassas, Virginia, plant on May 22, 2026, to deliver a message that reframes the memory cycle for investors: this is a structural shortage. “We see this shortage continuing beyond, well beyond 2026 timeframe,” he said, adding that Micron “are able to meet the demand of our key customers only about 50% to about two thirds in many cases.” For an industry conditioned by boom-bust pricing, that is the most important data point of the year.
Why “well beyond 2026” matters now
Micron is the only US-based memory manufacturer, and Mehrotra is now making the case that the supply gap will outlast the current calendar cycle. He framed memory as foundational to AI: “Memory is a strategic asset for AI across consumer as well as data center industries. Because without memory, you don’t really have that intelligence that is critically important.”
The supply math is the crux of the call. Mehrotra said, “Meaningful new supply in the industry doesn’t really start ramping until 2028 timeframe because at Boise, Idaho, fab will have first wafers out middle of next year and subsequent fabs will be phased out later in the future.” Translation: pricing power for DRAM and HBM has roughly two more fiscal years of structural runway before fresh capacity bites.
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The $200 billion onshoring plan
Mehrotra paired the shortage forecast with a capital commitment investors have not seen before from a US memory maker: $200 billion across Manassas, Boise, Idaho, and Syracuse, New York, projected to create 90,000 new high-paying US jobs. The Manassas facility quadruples DRAM production using one-alpha technology. He explained the endgame: “This will bring Micron’s total production over the course of the next ten years, as we ramp up all these multiple fabs, to about 40% of our production. By comparison, it is about 10% today.”