AI-Driven DRAM Shortage May Trim AMD Margins as Memory Prices Climb
Micron posted Q2 EPS of $12.20 on $23.86bn revenue, topping $9.00 and $19.7bn estimates as AI drives DRAM demand. Gartner forecasts 2026 DRAM shortages will slash PC shipments 10.4% and smartphones 8.4%, pressuring AMD’s CPU and GPU margins through higher memory costs.
1. Micron Q2 Outperforms Analysts
Micron delivered EPS of $12.20 on $23.86 billion revenue in Q2, well above consensus estimates of $9.00 and $19.7 billion, fuelled by skyrocketing DRAM demand from AI workloads.
2. DRAM Supply Tightness Lifts Prices
The global DRAM shortage is expected to cut PC shipments by 10.4% and smartphone shipments by 8.4% in 2026, driving DRAM prices up roughly 17% and tightening memory availability for hardware makers.
3. Cost Pressure on AMD Components
Since DRAM is a key cost component in AMD’s CPUs and GPUs, the supply constraints and higher prices could compress AMD’s hardware margins unless offset by chip pricing adjustments or supply diversification.