Dell CEO warns memory shortage will worsen

Michael Dell expects the memory shortage to worsen next year as AI data center construction absorbs DRAM and high-bandwidth memory supplies. Dell’s chairman and CEO said memory availability, rather than demand, is holding back shipments. The company has the largest backlog of undelivered AI server orders in its history. AI accelerators require substantial HBM, while the surrounding servers also depend on conventional DRAM.

New memory fabs take around four years to build, leaving Dell apparently expecting meaningful additional supply only in 2029 or 2030. Other memory industry leaders have issued similar warnings. Micron’s CEO expects supply to be much tighter in 2027 and 2028 than it is this year, while SK hynix’s CEO expects the shortage to last through 2030.

Dell is reportedly responding by purchasing DRAM close to final assembly and securing long-term supply agreements. It remains unclear how broadly those measures apply to the company’s consumer products.