Financial firm Jefferies outlined in a fresh report that memory prices will continue their upward momentum in the second half of this year. The global memory industry has been thrown into turmoil due to aggressive demand from the AI sector. As a result, the production shortages and the corresponding price increases have affected consumer electronics as well. However, the prices will continue to rise throughout 2027, believes the expert, with the first signs of easing in 2028.
Memory Pricing Pressure Won't Ease Until 2028, Says Expert
According to the details, memory prices in the third quarter can rise between 40% to 50% sequentially. On top of this, they can rise by another 30% to 40% in the fourth quarter, according to the expert quoted by Jefferies. Annually, the expert outlines that in 2027, the prices could jump by 40% to 45% annually.
The report is among several that have surfaced recently to outline that the prices will continue to rise in the future. One recent report came from Aletheia Capital earlier this month. It outlined that the average DRAM selling price could jump by 30% in the third quarter and by 10% to 15% in the fourth quarter.
China's Impact On Global Memory Market Will Be Limited, Says Expert
The expert adds that 2028 will be the first year that could see the ease in memory prices. In 2028, memory average selling prices could fall by as much as 15% to 20% as production capacity increases, leading to higher supply. The expert adds that a slowdown in demand could also play a role in the price drop.
Another trend that's caught the media's attention is the growth in memory supply from China. A former Samsung memory executive claimed in May that memory prices might fall as soon as next year. He outlined that since Chinese companies are aggressively investing in production, if their capacity increase hits the market, then memory capacity could grow by as much as six million wafers per month in the second half of 2027.
However, the expert believes that China's impact on the hot memory market could be limited, if any, in 2026 and 2027. The reason, according to them, is a technology gap between the Chinese firms and their Western and Korean counterparts. The expert adds that the Chinese impact could occur in 2028.
China's memory momentum is being led by CXMT, multiple reports have suggested. CXMT is offering DDR5 memory chips to domestic consumers and its products have also made their way into global markets.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
Follow Wccftech on Google to get more of our news coverage in your feeds.
