Jefferies Sees AI Demand Extending Memory Bull Market Into 2027

The expansion of AI servers is driving greater use of HBM, DRAM and NAND, while cloud service providers are moving more aggressively to secure limited production capacity. Jefferies, the global investment bank, said tight supply and rising prices are reinforcing each other, making this memory cycle more significant than the typical replacement demand for consumer electronics.

Jefferies' latest assessment said the memory price upcycle could continue into 2027, driven mainly by AI demand and competition among cloud providers for capacity. Although Chinese manufacturers are rapidly narrowing the NAND technology gap, they are unlikely to reverse the bullish market in the short term. Over the longer term, however, they could catch up with U.S. and South Korean producers. The available information did not provide the report's publication date or financial estimates.