1. AI Fuels Memory Market Shortage

The surge in artificial intelligence (AI) applications is reshaping the global memory landscape. High-capacity DRAM and NAND are now indispensable for AI training and inference, pushing demand far beyond initial forecasts.

2. DRAM Market Trends

   *  Micron leads with price hikes: From September 12, Micron suspended DRAM quotations for one week and raised prices across DDR4, DDR5, LPDDR4, and LPDDR5 by 20–30%. Automotive DRAM saw increases as high as 70%.

   *  Supply-side constraints: With memory makers shifting focus to high-bandwidth memory (HBM) and transitioning to advanced processes, DDR4 and DDR5 capacity is tightening.

   *  Price momentum: Over the past six months, DRAM price indices surged 72%, with the trend expected to extend from DDR4 into DDR5.

3. NAND Flash Market Developments

   *  SanDisk price adjustment: Announced a 10%+ price increase across all channels and consumer products.

   *  Long-term growth: Global NAND flash market is forecast to reach USD 65 billion in 2026 and USD 70 billion in 2027, with AI-related demand taking a larger share.

   *  AI-driven consumption: By 2026, one in five NAND bits will be used for AI applications, contributing up to 34% of total market value.

4. SSD and Application-Specific Storage

   *  Four major SSD categories—mobile eMMC, enterprise eSSD, consumer cSSD, and 3D NAND wafers—have rebounded since Q2 2025.

   *  Server market recovery: North American cloud service providers (CSPs) have finished inventory digestion, driving Q3 eSSD demand. HDD shortages also shifted data center demand toward enterprise NAND.

   *  Mobile storage: As Micron exits the mobile NAND segment, supply restructuring opens opportunities for Chinese and other Asian suppliers. Mobile NAND prices are expected to rise slightly in Q4.

5. Investment and Industry Outlook

   *  Stock performance: SanDisk stock jumped to USD 83, a recent high, following the market uptrend.

   *  Analyst recommendations: Citi upgraded Micron, SanDisk, Samsung, and SK Hynix to “Buy,” citing supply shortages and pricing power.

   *  Market sentiment: After years of stagnation, memory-related equities are gaining momentum, reflecting optimism over the new cycle.

Conclusion

The memory industry is entering a strong upcycle:

   *  Short term (Q4 2025–H1 2026): DRAM and NAND prices will rise broadly, especially in DDR5 and enterprise SSD.

   *  Medium term (2026–2027): AI adoption will continue to reshape memory demand, boosting NAND market value and sustaining DRAM growth via HBM transition and automotive applications.

For investors and supply chain partners, Micron, Samsung, SK Hynix, and SanDisk remain the key beneficiaries of this structural demand shift.