Micron Exits Consumer Market as AI Memory Shortage Persists

Micron Technology reported record financial growth driven by an explosive surge in demand for high-bandwidth memory (HBM) used in AI data centers. In fiscal Q1 2025, revenue hit $8.71 billion, later climbing to $13.64 billion by the first quarter of fiscal 2026. The company has integrated its HBM3E 8-high memory into Nvidia platforms and sold out its HBM supply for 2025.

To prioritize high-value enterprise deals and AI infrastructure, Micron exited the direct consumer memory market in December 2025 by shuttering its Crucial brand. While the company continues to supply RAM to OEMs like Dell and ASUS, the move has led to higher retail prices for DDR5 RAM and prompted smartphone makers such as Oppo and Xiaomi to reduce 2026 shipment targets.

Company executives warn that a structural imbalance remains, as HBM production consumes capacity that previously served PCs and phones. Despite expanding manufacturing via a $100 billion project in New York, sites in Idaho and Virginia, and a $1.8 billion investment in Taiwan, Micron expects meaningful output for consumers to materialize only by 2028. This expansion is partially supported by a $6.2 billion Chips Act award intended to move 40% of the company's DRAM manufacturing to the United States.