YG PRESS NEWS – NAND and DRAM markets: a recovery fueled by AI demand
OUTLINE
- The NAND market is projected to grow at a CAGR of 21% between 2023 and 2029.
- Looking ahead to 2024 and 2025, AI’s influence on NAND demand is anticipated to grow beyond server applications.
- In 2023, DRAM revenues hit their lowest point since 2016, driven by significant price drops caused by an imbalance between supply and demand.
- As demand for generative AI acceleration hardware initially emerged in datacenter applications and is now expanding into the smartphone and PC markets, the DRAM market is experiencing a broad recovery across all technologies.
Yole Group has recently updated its two memory monitors: NAND Market Monitor and DRAM Market Monitor. Check out the Q3-2024 updates now!
The recovery of the NAND market IS fueled by increasing demand for AI applications
According to Yole Group, in the NAND Market Monitor, in Q2 2024, bit shipments remained stable, with strong quarter-over-quarter (QoQ) and year-over-year (YoY) growth driven by eSSDs, while cSSD shipments saw declines in both volume and units. The demand for eSSDs is fueled by the need for high performance in AI training servers and the rising demand for high-capacity SSDs using QLC technology. Memory suppliers have also increased their capacity utilization…
From Recovery to Growth: DRAM’s Evolution Amid Generative AI Advancements
The DRAM Market Monitor observes that as demand for generative AI acceleration hardware expands from datacenter applications into the smartphone and PC markets, the DRAM market is experiencing a broad recovery across all technologies. In Q2 2024, industry-wide average operating margins reached 33%, with average selling prices rising 15% during the quarter. Fab utilization cuts, which previously helped normalize OEM and supplier inventories, are being reversed as DRAM suppliers work to meet growing demand from OEMs and datacenter operators. High-value products like HBM remain critical for AI acceleration in data centers and are expected to continue their rapid growth. Additional tailwinds for DRAM demand in the next 18 months include the replacement cycle for COVID-era PCs and the increasing DRAM requirements for AI-enabled smartphones and PCs…
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