Bank of America: AI memory supply shortage will last at least until the end of next year

Jinse Finance reported that on June 26, Vivek Arya, a senior semiconductor analyst at BofA Securities, recently stated that the memory industry is undergoing a fundamental structural transformation driven by artificial intelligence. Micron Technology’s latest quarterly results indicate that the capacity required to manufacture storage chips optimized specifically for AI is three to four times higher than for traditional computing products. In a recent interview, he explained, “Without storage chips, there is no artificial intelligence,” and pointed out that the recent surge in profits—far exceeding expectations—reflects a permanent shift rather than a typical cyclical uptick. Arya also anticipates that the supply-demand imbalance in AI memory will last at least until the end of next year. He mentioned that Micron has announced milestone agreements with 16 different clients, which will provide multi-year visibility in terms of pricing, quantity, and supply. “I think the durability of this cycle is different this time,” he said, emphasizing that even if storage chip manufacturers wish to increase output, physical constraints such as land, electricity, and manufacturing space make rapid expansion nearly impossible.