The prices of DRAM and NAND flash memory are set to rise dramatically due to the unprecedented demand for AI technologies. According to TrendForce, both industries have seen substantial revenue growth in recent years, a trend that is expected to continue. In 2024, DRAM revenue is predicted to hit $90.7 billion, marking a 75% year-over-year increase, while NAND flash revenue is projected to grow by 77%, reaching $67.4 billion.
The significant revenue surge is attributed to the booming AI market, which relies heavily on high-performance memory solutions. High-bandwidth memory (HBM) and DDR5 DRAM are major contributors, with HBM being crucial for high-performance GPUs used in AI applications. Average DRAM prices have already risen by 53% in 2024 and are expected to grow another 35% in 2025.
On the NAND flash side, the adoption of quad-level cell (QLC) technology in enterprise SSDs is a key driver. QLC technology, which stores four bits of data per memory cell, is becoming increasingly popular due to the high demand for fast and dense storage solutions. This shift is expected to maintain strong growth in the NAND flash market.
Despite these increases, there is hope for consumers. TrendForce suggests that while rising memory prices will elevate the cost of electronic products, manufacturers may find it challenging to pass these costs fully onto consumers, potentially leading to compressed profit margins and dampened end-user sales.
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