AI Boom Set to Drive Persistent DRAM Shortage Through 2027

Dow Jones
07/30

0751 GMT - The artificial-intelligence boom is heavily monopolizing DRAM production, particularly for high bandwidth memory, likely driving a persistent supply shortage through 2027, according to a TrendForce report. Surging AI server demand is outpacing supply, as new DRAM fabs won't meaningfully boost output until 2028, keeping prices strong. Meanwhile, weak consumer tech demand has created a sharply diverging outlook for NAND flash. TrendForce expects new capacity to push the NAND market into oversupply by late 2027, bringing potential downward pressure on prices. However, a breakthrough in agentic AI could reignite demand for high-speed NAND storage, pushing the market closer to equilibrium.

 

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