• Global memory sales jumped 31.7% month-on-month to a record $74.6 billion in [month], driven by surging AI demand.
  • NAND memory surged 40.7% to $25.8 billion, while DRAM hit $48 billion, with UBS expecting continued price increases and supply shortages through mid-2028.
  • Micron, Samsung, SK Hynix, and SanDisk are positioned to benefit most, though Bernstein warns price growth could slow as consumer demand weakens.

AI-Fueled Rally

Global memory sales soared to an unprecedented $74.6 billion last month, a 31.7% jump from the prior month, according to industry data. The surge was powered by relentless demand from AI data centers, with NAND flash memory climbing 40.7% to $25.8 billion and DRAM reaching $48 billion. “This is a supercycle driven by AI infrastructure buildout,” said a semiconductor analyst at a major investment bank. “Memory makers are seeing pricing power they haven’t had in years.”

The record figures underscore a dramatic turnaround for an industry that faced a severe downturn just a year ago. Now, suppliers are struggling to keep up with orders from cloud providers and AI startups. UBS projects that prices will continue to rise and supply will remain tight through mid-2028, citing capacity constraints and long lead times for new fabrication plants.

Winners and Cautious Notes

Among the biggest beneficiaries are Micron Technology, Samsung Electronics, SK Hynix, and SanDisk, the NAND flash unit of Western Digital. Micron, which reports quarterly results next week, is expected to post strong earnings on the back of higher memory prices. “Micron is in a prime position to capitalize on this AI-driven demand wave,” said an analyst at Bernstein, though the firm remains cautious about the longer term. “In the near term, things look great. But we anticipate price growth to ease as consumer demand for PCs and smartphones weakens.”

Samsung and SK Hynix, meanwhile, are ramping up production of high-bandwidth memory (HBM) used in AI accelerators, further tightening supply of conventional DRAM. “Companies are pivoting quickly to serve AI workloads,” said a supply chain specialist. “That leaves less capacity for the rest of the market, which is already tight.”

Supply Squeeze Ahead

The supply outlook remains constrained. UBS expects shortages to persist through mid-2028, noting that new fab construction takes years to complete. “Without a deal to expand capacity quickly, the industry will face a prolonged period of tight supply,” the bank said in a note. This bodes well for memory makers’ pricing power but raises costs for server makers and cloud operators.

Still, some analysts see headwinds. Bernstein remains bullish near-term but expects a slowdown in price growth as consumer demand weakens. “The AI surge is real, but it’s not enough to offset a broader economic downturn,” an analyst warned. “If consumer electronics orders fall further, memory prices could stabilize sooner than expected.”

Correction: An earlier version of this article misstated the month of the record sales. The data reflects the most recent month available.