Memory Prices Could Keep Climbing Through 2027 as AI Demand Squeezes Supply
Memory prices may remain under heavy upward pressure for longer than many consumers and hardware makers had hoped. A fresh report from financial firm Jefferies suggests that the global memory market is still facing a serious supply-demand imbalance, largely driven by the rapid expansion of artificial intelligence infrastructure.
The biggest pressure is coming from AI servers, data centers, and high-performance computing systems, all of which require large amounts of advanced memory. As major cloud providers and AI companies continue buying aggressively, memory manufacturers are struggling to keep up. That shortage is now spilling into broader consumer electronics markets, affecting products such as PCs, smartphones, laptops, graphics cards, and other devices that depend on DRAM and related memory technologies.
According to the expert cited in the Jefferies report, memory prices could rise sharply in the second half of 2026. Prices in the third quarter may increase by 40% to 50% compared with the previous quarter. The fourth quarter could bring another sequential jump of 30% to 40%, keeping pressure on manufacturers and consumers alike.
The outlook for 2027 does not appear much easier. The expert expects memory average selling prices to rise by around 40% to 45% on an annual basis next year. If that forecast proves accurate, buyers could face a prolonged period of elevated prices across the memory market.
This view lines up with other recent industry forecasts. Earlier this month, Aletheia Capital projected that average DRAM selling prices could increase by around 30% in the third quarter, followed by another 10% to 15% rise in the fourth quarter. While the exact numbers vary, the broader message is the same: memory pricing is likely to stay strong as demand continues to outpace available supply.
Relief may not arrive until 2028. The expert cited by Jefferies believes that year could mark the first meaningful easing in the memory market. By then, expanded production capacity may finally begin to catch up with demand. If supply improves enough, average selling prices could decline by 15% to 20%.
A potential slowdown in demand could also help cool the market. AI-related demand has been the main engine behind the current surge, but if infrastructure spending moderates or if customers delay upgrades due to high costs, the balance between supply and demand could begin to shift.
China’s role in the memory market is another major point of discussion. Chinese memory manufacturers have been investing heavily in production capacity, raising questions about whether they could bring enough supply online to weaken global prices sooner than expected.
Some industry voices have suggested that China’s expanding output could start affecting prices as early as 2027. One former Samsung memory executive previously argued that if Chinese production ramps successfully, global memory wafer capacity could grow significantly in the second half of 2027.
However, the expert referenced in the Jefferies report takes a more cautious view. They believe China’s impact on the global memory market will likely remain limited in 2026 and 2027 due to a technology gap between Chinese suppliers and established memory leaders in South Korea and the West. In their view, China may begin to have a more noticeable influence in 2028, when its production capabilities and product maturity could be stronger.
CXMT is widely seen as one of the key companies leading China’s memory ambitions. The company has been supplying DDR5 memory chips to domestic customers, and its products have also started appearing outside China. Still, becoming a major force in the global memory market requires not only capacity but also advanced technology, strong yields, reliability, and customer trust.
For consumers, the message is clear: memory upgrades and electronics that rely heavily on DRAM may remain expensive for some time. PC builders, laptop buyers, smartphone manufacturers, and server operators could all feel the impact if prices continue rising at the pace predicted.
For memory makers, however, the current cycle could be highly profitable. Strong pricing gives companies more room to invest in new fabs, advanced process technologies, and next-generation memory products designed for AI workloads. The challenge is timing. Building new capacity takes years, and by the time supply catches up, demand conditions may have changed.
The memory market has always moved in cycles, but the AI boom has made this one especially intense. With data centers consuming enormous volumes of high-performance memory, the traditional balance between consumer demand and enterprise demand has shifted. As long as AI investment remains aggressive, memory prices are likely to stay elevated.
If Jefferies’ forecast is correct, the pressure may not truly ease until 2028. Until then, buyers may need to prepare for higher DRAM prices, tighter supply, and more expensive memory-dependent devices across the global technology market.
