According to a report by Jefferies Equity Research, memory prices are expected to see a 40-50% rise in Q3 2026 versus the current quarter. Following Q3, the market should brace for another 30-40% hike in Q4 2026. In 2027 a 40-45% Year-on-Year price hike is suggested.
The only recovery will be seen by 2028 when ASPs are expected to decline as new capacity, around 15 to 20%, comes into play.
The blame is being placed squarely at the feet of AI. Compute-hungry data centres, which power AI, need more and more chips to keep up with demand from AI companies, which means demand for them is outstripping supply.
50% of the total capacity is covered in long-term deals and contracts that are being signed between memory makers and top technology companies.
image: Gorodenkoff/Shutterstock.com