AI Demand Fuels 369% Surge in DRAM Revenue as Memory Prices Climb

DRAM revenue jumps 369 percent as AI demand keeps supplies tight and prices climbing

Memory manufacturers are posting windfall profits as buyers face mounting pressure, with industry-wide DRAM revenue nearing five times its level from the previous year.

Surging demand for data center capacity and AI accelerators drove a 369 percent year-over-year revenue increase in the third quarter of 2026, according to Counterpoint Research.

“Bit shipments increased by only about 4 percent this quarter, yet DRAM revenue climbed to nearly $200 billion—almost five times the figure from a year ago,” said Jeongku Choi, senior analyst at Counterpoint.

“AI has transformed memory from a commodity into a scarce, high-value resource,” Choi added. “Buyers are now competing for limited supply instead of negotiating on price. With prices continuing to climb, suppliers are poised to set new earnings records in the coming quarter.”

The AI infrastructure boom has driven server memory demand to new heights. Manufacturers have prioritized higher-margin products for that segment, tightening supply for PCs, smartphones, and other devices.

The result has been a sharp rise in memory costs and higher prices for devices that rely on it. Across Europe this summer, average laptop and desktop prices climbed by double-digit percentages, causing PC shipments to fall as vendors struggled to secure supply and buyers balked at the added expense.

Smartphone shipments have declined by at least 20 percent for similar reasons. Rising memory costs have pushed budget models out of the market, prompting vendors to concentrate on premium devices.

According to Counterpoint, the pace of price increases eased from the steep hikes seen in the first half of the year. However, average DRAM selling prices still reached $1.90 per gigabit and remained the primary driver of revenue growth.

Among the three leading memory manufacturers, Samsung captured a 38 percent share of DRAM revenue. The company separately forecast Q3 operating profit of approximately $80 billion, up from $9 billion a year earlier.

SK hynix recorded stronger sequential growth, helping it regain some of the market share lost earlier in the year, Counterpoint noted. The firm reported $62.8 billion in profit and predicts that memory shortages will persist until at least 2030.

Micron’s DRAM revenue grew more slowly than its rivals’, but its broader business remained robust. Fiscal fourth-quarter net profit reached $37.7 billion, surpassing the company’s entire second-quarter revenue of $23.8 billion.

MS Hwang, research director at Counterpoint, expects memory prices to remain elevated through next year.

“High-bandwidth memory prices, which trailed commodity DRAM earlier this year, are now catching up,” Hwang said. “Long-term agreements are supporting prices, and supply will remain tight because major new fabrication plants will not begin production until 2028. LTA terms may lead to short-term differences among suppliers, but over time all should follow the same upward trajectory.”

The outlook brings further challenges for buyers, while memory manufacturers continue to reap substantial profits.

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