AI Inference and Data Center Demand Set to Drive DRAM Rally Through 2027
The expansion of AI inference services and continued data center construction by major cloud providers are boosting demand for server DRAM. Meanwhile, memory manufacturers are shifting capacity toward high-bandwidth memory, further tightening supplies of conventional DRAM. Daiwa Securities expects the supply-demand imbalance and price rally to persist through 2027, shaping the earnings cycle for memory producers.
Daiwa Securities said in its latest report that Nanya Technology benefited from rising DRAM prices, with second-quarter 2026 revenue beating market expectations and the company returning to profit from a loss. This indicates that the industry recovery is already showing up in its financial results. Daiwa therefore sharply raised its price target for Nanya Technology to NT$650, citing expectations that AI inference demand will continue to support pricing and earnings.
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The history behind this eventDRAM Rally Persists as AI Memory Costs Soar
The AI boom is fueling demand for high-bandwidth memory, but constrained capacity and tight supply are also pushing up conventional DRAM prices. Bernstein said revenue per wafer for conventional DRAM has surpassed that of HBM, suggesting memory-chip makers' profit momentum is broadening beyond a single high-end product. Taiwan's memory supply chain is also expected to benefit.
Bernstein's latest forecast sees the DRAM rally and the industry's windfall-profit cycle continuing through 2027. Earnings per share at the three major memory-chip makers could also peak in 2027 as HBM prices rise before reversing in 2028. Higher prices will boost supplier revenue but also increase hardware costs for building AI servers and training large models.
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