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Multiple industry reports indicate a widening split in memory markets: DRAM spot demand has strengthened with sellers withholding supply and lifting prices, while NAND Flash shows mixed signals—spot trading is weak but contract-level demand from AI and hyperscale data centers is tightening supply. Executives warn the NAND shortage could persist through 2028 as inference workloads and aggressive capacity commitments by cloud providers keep wafer demand high and fab additions lag. OEMs and component makers are already passing costs to customers—memory card and portable SSD brands have announced double-digit price hikes—signaling broader price pressure across storage products into H2 2026.
Memory market dynamics affect component sourcing, pricing and product roadmaps for hardware and cloud providers. Persistent NAND tightness and DRAM price strength will shape procurement, inventory and design decisions through 2028.
Dossier last updated: 2026-05-14 01:13:43
DeMingLi told investors that the current storage cycle differs from past ones because AI-driven demand and a shift of supply toward higher-value products are creating a new phase for the industry. Accelerated deployment of AI inference is expanding long-term demand for memory. Market research firm TrendForce projects steep quarterly contract price increases in 2Q 2026—general DRAM up 58–63% and NAND Flash up 70–75%—and major analysts remain optimistic about continued industry strength. DeMingLi expects supply to stay tight through the year, implying sustained pricing power and investment opportunities for vendors and cloud providers reliant on high-performance storage.
TrendForce reported on May 13 that the spot memory market diverged after the May Day holiday: DRAM demand warmed while NAND Flash remained subdued. DRAM buying concentrated on mainstream DDR4 512×16 and 1G×16 parts, prompting sellers to withhold supply and raise quotes; DDR4 1G×8 3200 MT/s spot price rose about 0.94% to $32.3. In contrast, NAND Flash saw weak trading with buyers cautious and only sporadic urgent orders supporting the market; 512Gb TLC spot rose a modest 0.34% to $20.541. TrendForce warns that without stronger end-market demand, NAND prices are likely to stay in narrow consolidation while DRAM shows short-term strengthening.
Silicon Motion general manager Gou Jiazhuang warned that the NAND flash shortage could persist through 2028 as AI workloads shift from training to inference, driving sustained demand for memory and storage. He cited aggressive infrastructure buildouts by North American cloud providers and OEMs locking supply via long-term contracts and prepayments. Gou noted that new memory fabs take at least 2–3 years to produce effective capacity—plus equipment lead times of 12–18 months—so supply cannot quickly catch up. He expects memory prices to keep rising in H2 2026, though at a slower pace than earlier in the year, and predicts larger brands like Apple will better absorb costs and potentially gain share.
Lexar is reportedly raising prices on its memory card products by up to 25% starting June 1, according to PhotoRumors and IT Home. The move follows similar hikes from brands like LaCie, OWC and ProGrade affecting SD cards and portable SSDs. Industry-wide flash memory price inflation is being driven by surging NAND demand from AI workloads and hyperscale data centers, which has tightened supply and pushed contract NAND wafer prices sharply higher; Q2 2026 contract NAND prices are forecast to jump 70–75% quarter-over-quarter. The increases signal broader cost pressure across storage hardware and could impact device makers, photographers, and consumers relying on flash media.