Global DRAM Revenue Soars 369% Amid AI-Driven Supply Scarcity
AI infrastructure demand transforms memory into a scarce resource, driving record profits for manufacturers.
1Record Revenue Surge
Global DRAM revenue reached nearly $200 billion in Q3 2026, marking a 369 percent year-over-year increase. This growth is primarily fueled by intense demand for AI accelerators and datacenter capacity. While bit shipments rose only 4 percent, the shift toward high-value memory has fundamentally altered the industry's financial landscape.
2Market Share Dynamics
Samsung leads the market with a 38 percent share, followed by SK hynix at 29 percent and Micron at 21 percent. China’s CXMT holds 9 percent, though it faces challenges as it trails in HBM3E production. Samsung currently leads in HBM4 development, while SK hynix maintains dominance in current HBM3E sales.
3AI Infrastructure Impact
The AI boom has turned memory from a standard commodity into a highly valuable, scarce resource. Manufacturers are prioritizing lucrative server-grade products, which creates supply constraints for consumer electronics. Consequently, buyers are now competing for limited availability rather than negotiating prices, leading to sustained upward pressure on global memory costs.
4Consumer Device Consequences
Rising memory costs have significantly impacted the PC and smartphone sectors. European laptop and desktop prices rose by double-digit percentages, causing a decline in shipments. Similarly, smartphone vendors are struggling, with shipments falling by at least a fifth as high memory costs force companies to abandon budget models for premium devices.
5DDR and LPDDR Growth
While HBM remains the most profitable segment, demand for DDR and LPDDR is growing faster due to agentic AI needs. DDR demand is up 500 percent and LPDDR by 400 percent year-over-year. Notably, CXMT was the first to mass-produce LPDDR6, which is already appearing in devices like the Xiaomi 18 Fold.
6Pricing and Agreements
Average selling prices reached $1.90 per gigabit in Q3 2026. Although the pace of price increases has slowed compared to the first half of the year, prices remain high. Long-term agreements are currently supporting these elevated price levels, ensuring that manufacturers continue to see significant revenue growth across their portfolios.
7Future Supply Constraints
Memory shortages are expected to persist until at least 2030. A critical factor is that major new fabrication plants will not begin production until 2028. This long-term supply bottleneck suggests that memory prices will remain strong throughout next year, as HBM prices continue catching up to commodity DRAM price levels.
8Industry Profit Outlook
Manufacturers are reporting massive earnings, with Samsung forecasting $80 billion in Q3 operating profit and Micron reaching $37.7 billion in net profit. As long-term agreements lock in current trends, the industry is on track to set new earnings records, signaling a prolonged period of profitability for the major memory producers.
Original article: The Register — Global DRAM Revenue Soars 369% Amid AI-Driven Supply Scarcity