Meta Faces Higher AI Memory Costs as RAMageddon Drives Micron Q3 Revenue $41.45B
META•Meta joins hyperscalers in hoarding high-bandwidth memory chips as AI-driven supply crunch dubbed RAMageddon persists into 2027. Micron’s Q3 revenue jumped fourfold to $41.45 billion while profits soared to $28.2 billion, briefly matching Meta’s market valuation and signaling potential cost inflation for Meta’s data centers.
1. AI Memory Supply Crunch
The AI-driven surge in demand for DRAM, NAND and high-bandwidth memory has created a supply crunch known as RAMageddon, predicted to last into 2027. Hyperscalers including Meta, Microsoft, Amazon AWS, Google and Oracle are purchasing large volumes, intensifying shortages.
2. Impact on Meta’s Data Center Costs
Meta’s AI data center expansions rely on high-bandwidth memory chips, exposing the company to potential cost inflation and supply bottlenecks. Hoarding behavior among peers may exacerbate price increases and delay procurement timelines.
3. Micron’s Performance and Valuation
Micron reported Q3 revenue of $41.45 billion, a fourfold increase year-over-year, and profits jumped to $28.2 billion, briefly lifting its market valuation to nearly match Meta’s $1.39 trillion. This valuation surge underscores Wall Street’s focus on memory makers over cloud platforms.
