AI Drives DRAM and NAND Faces Oversupply

Artificial intelligence will remain the biggest driver of the memory industry in 2027, but the outlook for DRAM and NAND Flash is expected to diverge significantly. 
 
According to TrendForce, DRAM will continue to face tight supply, while NAND Flash is likely to shift toward a more balanced, and eventually oversupplied, market.
 
On the DRAM side, rising demand for AI servers, High Bandwidth Memory, and next-generation CPU platforms from Intel and AMD will keep supply constrained. 
 
Delays in new production capacity and the complexity of High Bandwidth Memory manufacturing are expected to limit meaningful output growth until 2028.
 
TrendForce expects global server shipments to accelerate in 2027, driven by AI infrastructure investments and the commercialization of Agentic AI.

 
Higher memory content per AI server will further strengthen DRAM demand.

By contrast, NAND Flash production is expected to expand as suppliers adopt higher-layer technologies and new fabrication facilities gradually come online, increasing overall bit supply.
 
Enterprise SSDs will remain the primary demand driver, particularly for AI workloads, while smartphones and notebooks continue to experience weak consumer demand due to rising device prices.
 
TrendForce believes NAND Flash will transition to a more balanced market in 2027. 
 
However, faster adoption of Agentic AI and high-speed SSDs could absorb additional capacity, helping stabilize supply-demand dynamics across the memory industry.