Memory and Flash Prices Are Not Coming Down (Through 2027)
StorageSwiss.com, Wednesday, May 6th, 2026
Memory and flash prices are rising structurally through 2027 due to wafer reallocation toward AI-focused HBM production.
Memory and NAND flash prices are experiencing a structural reallocation rather than a cyclical shortage, with DRAM contract prices rising 90-95% in Q1 2026 and NAND prices climbing 70-75% in the same period.
Manufacturers are redirecting wafer capacity toward High Bandwidth Memory (HBM) for AI accelerators, which commands premium pricing from hyperscalers, while conventional DRAM and NAND supplies remain constrained.
New fabrication capacity will not arrive in meaningful volume until late 2027 or later, and demand from generative AI inference applications continues to accelerate, ensuring elevated component costs will remain the baseline through 2027 and likely reset long-term pricing floors higher than historical levels.