Memory Market Forecasts Surge
TrendForce has significantly increased its global memory market forecasts, predicting it will reach $889.3 billion in 2026, up from a previous outlook of $551.6 billion. The market is expected to be driven by $618.7 billion in DRAM and $270.6 billion in NAND revenue. For 2027, the forecast boosts from $842.7 billion to $1.28 trillion.
The surge in demand stems from the artificial intelligence infrastructure build-out, which necessitates high-bandwidth memory (HBM). Prices for both DRAM and NAND have increased due to a demand-supply imbalance, with DRAM manufacturers focusing on high-margin HBM, consequently raising prices for standard DRAM. NAND flash prices are also climbing as production restrictions following the pandemic continue to impact supply.
Micron Technology reported a nearly triple increase in revenue for its fiscal Q2, totaling $23.9 billion, and gross margins rose from 36.8% to 74.4%. Sandisk’s revenue soared 251% year over year to $6 billion, leading to a per-share profit of $23.41, compared to a loss a year earlier. Both companies are entering long-term deals to stabilize operations in the volatile memory market.
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