The current memory market situation is dire with prices of DRAM and NAND flash memory skyrocketing in Q1 2026. This surge is fueled by AI trends and heightened demand from hyperscalers and cloud service providers (CSPs), putting tremendous pressure on existing supply chains.

Initially, TrendForce analysts suggested a 55-60% price increase for DRAM sequentially in Q1, alongside a 33-38% rise for NAND flash utilized in solid-state storage. However, current estimates suggest a DRAM price jump of 90-95% quarter-over-quarter (QoQ), and NAND price increases of 55-60% in the same period.

Aside from AI’s growing footprint, unexpectedly high PC shipments in the fourth quarter of 2025 have exacerbated these shortages. TrendForce notes that OEMs like Dell and HP generally stockpile memory well ahead of demand, a strategy now disrupted by dwindling inventories and the necessity of restocking, likely resulting in increased system prices.

The cost of PC DRAM is expected to nearly double, with similar increases for LPDDR memory used in laptops and smartphones. Significant hikes are predicted for LPDDR4x and LPDDR5x, reaching the steepest levels recorded.

Moreover, the demand for NAND flash is accelerating as CSPs rush to procure SSDs for AI inference workloads. This upswing in the memory sector is partly driven by the evolving AI infrastructure, moving from training to inference, requiring greater resources.

The continuation of this pricing trend seems inevitable, as new fabrication facilities—the key to resolving these shortages—are years away from becoming operational. Although DRAM prices are predicted to peak later this year, they are expected to remain elevated until 2028 due to ongoing constraints.