Micron Technology shares rose more than 5% Thursday as memory stocks rallied after Intel CEO Lip-Bu Tan warned that the shortage could worsen in 2027. SK hynix gained about 5%, while the Nasdaq advanced more than 1% following Wednesday's Federal Reserve decision. Tan made the comments Tuesday at the AI Infrastructure Summit in Santa Clara, saying memory chip prices had increased five- to sevenfold as supply struggled to meet demand from artificial intelligence. Micron is scheduled to report fiscal fourth-quarter results Sept. 30, giving investors a fresh indication of whether tight supply is still lifting prices and margins. The company reported fiscal third-quarter revenue of $41.46 billion, compared with $9.30 billion a year earlier, and an 84.9% non-GAAP gross margin. It guided for about $50 billion in fourth-quarter revenue and an 86% gross margin. Micron CEO Sanjay Mehrotra said in June that supply would improve only gradually in 2028. The outlook also depends on AI spending, with Nvidia given about a 71% chance on Polymarket of ending 2026 as the world's largest company, based on more than $7 million traded. Nvidia's AI accelerators use large quantities of high-bandwidth memory, a particularly constrained part of the market. Industry forecasts point to continued pricing strength: TrendForce estimates server DRAM contract prices rose 64% in the second half of 2025 and could increase another 270% in 2026. SK hynix CEO Kwak Noh-jung called 2027 the industry's worst year for supply, while Yorkville America CEO Steve Neamtz said new factories may not reach full production until 2028 or 2029. Micron said 14 of its first 16 strategic customer agreements included about $100 billion in minimum contracted revenue, with price bands intended to improve visibility through the memory cycle.