AI server demand has driven DRAM and NAND flash to record-high prices as supply tightens, creating a memory bottleneck in data center buildout
Demand for artificial intelligence server memory has driven prices of standard DRAM and NAND flash to record highs in July, as memory makers concentrate production capacity on high value-added server products and advanced processes, reducing supply of PC DRAM and legacy NAND.
According to DRAMeXchange, operated by market research firm TrendForce, the average fixed transaction price for DDR4 8-gigabit standard PC DRAM in July was $24, up 14.29% from $21 in June and the highest price since the survey began in June 2016. The product has risen steadily throughout 2026, from $11.50 in January to $13 in March, $16 in April, $20 in May, and $21 in June—a cumulative gain of approximately 109% since the year began.
For standard NAND flash used in memory cards and USB storage devices, the average fixed transaction price for 128Gb multi-level cell (MLC) in July reached $30.05, up 4.26% from $28.82 in June and surpassing $30 for the first time. Compared with the January price of $9.46, this represents a 218% increase over seven months.
TrendForce projects that PC DRAM supply will continue to shrink as server products consume production capacity. Although notebook demand is weakening due to rising finished goods prices, suppliers maintain an upper hand in price negotiations. In the NAND market, production capacity is shifting toward more profitable products such as high-layer three-dimensional NAND and corporate solid-state drives, prolonging shortages of legacy-process products. Single-level cell NAND used in network equipment, automobiles, and smart meters saw strong pricing due to inventory shortages, though multi-level cell NAND posted slower gains as sustained price increases burden customers' expenses.
Market research firm TrendForce predicts DRAM shortages will persist into 2027, sustained by demand for AI servers and high-bandwidth memory. By contrast, NAND supply conditions are expected to gradually ease from the second half of 2027 as new production capacity comes online.