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Sanjay Mehrotra argues persistent AI demand is replacing the industry's historic cycle of oversupply and price collapse
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Micron $MU Technology Chairman, President, and CEO Sanjay Mehrotra said Thursday that artificial intelligence has upended the economics of the memory business, a sector that has historically lurched between periods of shortage and oversupply. "Today there is no AI without memory. AI systems need more memory. They need higher performance memory. They need lower power memory," Mehrotra told CNBC on "Mad Money." "So, the value of memory, that equation has totally changed."
Mehrotra said AI is generating a more durable source of demand than anything the memory industry has seen before, according to CNBC. He pointed to autonomous vehicles, robots, and consumer devices with embedded AI as categories that will consume substantially more memory over the coming years. He added that Micron still cannot produce enough to satisfy current demand. "All our customers across our end markets will buy everything that we make," he said, adding that data-center customers currently want roughly 50% more supply than Micron is able to commit.
