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UBS doubles its DRAM price forecast as memory demand outpaces supply by 17 points through 2027
Wccftech • • business
Key Points:
- UBS forecasts significant increases in DRAM and DDR memory prices in Q3 and Q4, with DDR contract pricing expected to rise 32% sequentially in Q3 and 18% in Q4, surpassing earlier estimates.
- The bank anticipates a supply-demand imbalance in memory markets, projecting demand growth of 36.2% in 2027 against supply growth of 19.3%, which will contribute to sustained price increases.
- UBS expects NAND prices to increase by 30% sequentially in Q3 and 12% in Q4, potentially driving memory industry revenues to $992 billion in 2026 and $1.7 billion in 2027.
- TrendForce concurs on ongoing severe DRAM shortages and anticipates DRAM prices rising 18% and NAND prices 15% sequentially in Q3, but notes that high base prices and softer consumer demand may moderate price growth.
- Both UBS and TrendForce highlight that while prices will rise, the consumer market's limited capacity to absorb further NAND price hikes could temper the pace of increases.
