DRAM and NAND flash revenues set to soar 75% as AI demand continues to surge
DRAM and NAND flash revenues are projected to grow significantly due to high demand from AI, but this increase may lead to higher retail prices.
The DRAM and NAND flash industries are seeing a substantial revenue increase, fueled by the AI boom. DRAM revenue is anticipated to jump by 75% year-over-year in 2024 to $90.7 billion, with a further 51% increase in 2025, reaching $136.5 billion. High-bandwidth memory (HBM) will account for 20% of DRAM revenue, while DDR5 and LPDDR5/5X are also contributing significantly.
NAND flash storage is also poised for a revenue bonanza, with a projected 77% increase in 2024 to $67.4 billion, and an additional 29% rise in 2025 to $87 billion. Key drivers include the adoption of high-capacity QLC NAND enterprise SSDs in AI data centers. QLC NAND is expected to make up 20% of total NAND shipments in 2024.
While these revenue boosts provide ample funds for manufacturers to reinvest in R&D and new fabs, they also lead to higher component costs for device makers. Consequently, retail prices for smartphones, PCs, and servers may increase. This trend highlights the double-edged nature of significant industry growth.