DRAM Prices Could Go Up By 2x Amid Incredible Demand For AI

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Prepare For Unprecedented Memory Demand!

Story Highlight
  • The current demand for AI expansion has had a notable impact on all types of hardware.
  • This will directly impact DRAM and NAND demand, leading to revenues rising up to $90.7 billion this year for the former and $67.4 billion for the latter.
  • UFS and QLC flash adoption will also contribute to the rising demand in 2025.

According to the analyst TendForce, both DRAM and NAND Flash memory demand is predicted to be at an all-time high by the end of 2024, with DRAM revenue reaching an astounding $90.7 billion.

Why it matters: The reason for this high demand is the AI boom. Companies investing in AI want to have maximum capabilities at hand.

Demand RAM
DRAM Revenue Projection via TrendForce

Additionally, it is projected that NAND Flash memory will generate $67.4 billion, a 77% increase in income from the previous year. DRAM revenue isn’t expected to decline anytime soon, with a potential y-o-y increase of up to 75% over 2023.

We have seen surges in prices for processors and graphics cards, but now DRAM and NAND Flash memories are in highest demand compared to past years. When they reach that level, revenue is anticipated to climb by 51% to $136.48 billion.

HBM memory, one of the most expensive in the industry, accounts for 20% of revenue, even though it is only involved in 5% of shipments. This is one reason for this surge in revenue.

Furthermore, DDR4 RAM will account for 40% of revenue growth in 2024 and should account for 60-65% in 2025. TrendForce also provides graphs showing the development of NAND Flash memory revenue.

Here, we can observe that NAND memory will have a similar fate and that sales will rise. We anticipate a 29% growth over 2024 to 86.974 billion dollars in 2025. The use of QLC in SSDs and UFS storage in mobile devices will drive demand for NAND Flash memory.

It is anticipated that AI companies will begin acquiring QLC SSDs at cheaper prices and with greater capacity, making them account for 20% of all exports by 2024.

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