Dell CEO Warns: $95 Billion AI Server Backlog as Memory Shortages Worsen in 2027

According to a report by tech media outlet Hardwareluxx, Michael Dell, CEO of US computer manufacturer Dell Technologies, stated that shortages of High Bandwidth Memory (HBM) and traditional DRAM are expected to become more severe in 2027 as artificial intelligence (AI) data center construction continues to absorb significant memory supply.

Dell revealed that Dell's current backlog of AI server orders has reached approximately $95 billion. This figure reflects massive demand in the enterprise server market, rather than consumer PC demand. He noted that while processors and accelerators may be available, the accessibility of memory is directly limiting business delivery speeds. Shortages in either type of memory prevent the smooth assembly and shipment of entire systems.

Dell believes that overall supply tightness could persist for several years. Some newly built semiconductor fabs are not expected to reach full production capacity until 2029 or 2030. As memory manufacturers allocate large portions of their capacity to high-margin server memory, this may limit flexibility for other product lines. For investors, this warning highlights the physical supply chain bottlenecks facing AI infrastructure expansion.