Dell CEO warns memory supply tightness will worsen further in 2027

Dell Technologies Chairman and CEO Michael Dell warned that the current memory supply tightness is far from over and is expected to worsen further in 2027. He mentioned that Dell has about $95 billion in AI server orders not yet delivered, the highest backlog in the company's history, and that insufficient memory supply is a core factor hindering the conversion of orders into revenue. He also pointed out that building a new memory wafer fab typically takes about four years, so even if capacity is expanded now, it will not be until 2029 to 2030 that sufficient new capacity can be released. Other reports said that Dell CEO Michael Dell stated that AI data centers are absorbing large amounts of storage supply, and that the shortage of HBM and conventional DRAM will be more severe in 2027, with overall tight supply possibly lasting for several years; Dell COO Jeff Clarke mentioned that if Agentic AI workloads continue to grow rapidly, tight supply of some key components may last more than 5 years.

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1. Report date Oct 21· 2 reports

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