DRAM prices surge nearly double in Q1 2026 as artificial intelligence boom strains memory supply

DRAM prices expected to nearly double in Q1

The memory shortage is worse than most of us first thought. Prices on DRAM and NAND flash memory are expected to surge in the first quarter of 2026 as AI-driven hyperscalers and cloud service providers (CSPs) continue to strain supply chains. In early January, the industry watchers at TrendForce warned the contract prices of DRAM, the kind used in everything from smartphones to servers, could rise by 55-60 percent sequentially during the first quarter of 2026. At the same time, NAND flash, which is used in solid state storage, was expected to rise by 33-38 percent. TrendForce this week revised its estimates with analysts now predicting DRAM contract pricing will surge by 90-95 percent QoQ, while NAND prices are expected to increase by 55-60 percent during the current quarter. While AI demand is largely to blame, TrendForce notes that higher-than-expected PC shipments in the fourth quarter of 2025 further exacerbated shortages. As we've previously reported, OEMs like Dell and HP tend to purchase memory in bulk about a year in advance of demand. If you noticed OEM pre-build pricing holding steady as standalone memory kits tripled in price, this is part of the reason why. But as inventories begin to draw down, and OEMs begin to restock, expect to see system prices climb. TrendForce now expects PC DRAM to roughly double in price from the holiday quarter. And the firm forecasts similarly steep increases for LPDDR memory used in notebooks and other soldered-RAM systems, as well as in smartphones. TrendForce predicts pricing on LPDDR4x and LPDDR5x memory to increase by roughly 90 percent QoQ, the "steepest increases in their history." While LPDDR memory has mostly been used in notebooks up to this point, Nvidia's most powerful rack systems contain 54 terabytes of LPDDR5x memory each, which we can't imagine is helping the situation. NAND flash pricing is also expected to surge during the quarter as hyperscalers and CSPs scramble to deploy as many SSDs as they can to support AI inference workloads. "The demand for high-performance storage has far surpassed initial expectations as AI applications driven by inference continue to grow," TrendForce wrote. "Since late 2025, leading North American CSPs have been rapidly increasing their procurement, resulting in a surge of enterprise SSD orders." As AI infrastructure continues its transition from mostly training to an inference dominated space, additional DRAM and storage are required. During large language model (LLM) inference, the model state is stored in something called the key-value cache. You can think of this as the model's short-term memory. During active use, like a chatbot session, this KV cache is computed and typically stored in HBM. When the session idles, that precomputed KV cache is then pushed to slower system memory, and in many cases eventually drops to a storage tier. By storing the KV cache, inference providers can dramatically reduce the compute required for extended multi-session inference while also improving the interactivity for users. The downside to all of this is that storing all those precomputed KV caches requires a lot of memory. If you were hoping for relief from the memory winter, don't get your hopes up. While memory vendors now have the capital for new fabs, these facilities will take years to bring online. As we previously reported, while DRAM prices are expected to peak later this year, it'll be years before they return to normal. Prices are expected to remain high through 2028. ®

Trendforce sees chip prices surging 90-95% in Q1 from previous quarter

SEOUL, Feb 2 (Reuters) - Market researcher TrendForce said on Monday that it has raised its chip price forecasts and expects conventional DRAM contract prices to jump by 90% to 95% in the January to March period of this year, from the final three months of 2025, citing the artificial intelligence boom. It previously estimated 55% to 60% price growth for dynamic random access memory for the first quarter. "Persistent AI and data center demands in 1Q26 are further worsening the global memory supply and demand imbalance, thereby increasing suppliers' pricing power," TrendForce said in a statement. Reporting by Hyunjoo Jin; Editing by Kirsten Donovan Our Standards: The Thomson Reuters Trust Principles., opens new tab

Trendforce sees chip prices surging 90-95% in Q1 from previous quarter

Market researcher TrendForce said on Monday ⁠that it has raised its chip price forecasts and expects conventional DRAM contract prices to jump by 90% to 95% in the January to March period of this year, from the final three months of 2025, citing the artificial intelligence boom. Market researcher TrendForce said on Monday ⁠that it has raised its chip price forecasts and expects conventional DRAM contract prices to jump by 90% to 95% in the January to March period of this year, from the final three months of 2025, citing the artificial intelligence boom. Budget 2026 Critics' choice rather than crowd-pleaser, Aiyar saysSitharaman's Paisa Vasool Budget banks on what money can do for you bestBudget's clear signal to global investors: India means business It previously estimated 55% to 60% price growth for dynamic random access memory for the first quarter. "Persistent AI and data center demands in 1Q26 ⁠are ⁠further worsening the global memory supply and demand imbalance, thereby increasing suppliers' pricing power," TrendForce said in a statement.