Svmuu News UBS reports that as demand for artificial intelligence (AI) continues to grow and negotiations on long-term supply agreements (LTAs) are still underway, the memory chip market cycle is “gaining further momentum,” and the structural supply shortage is expected to persist at least through mid-2028.
UBSTotal revenue for the memory chip industry is projected to reach $992 billion for the full year of 2026. By 2027, this figure is expected to nearly double, reaching $1.76 trillion.The primary driver of this growth is High Bandwidth Memory (HBM), a type of DRAM specifically designed for AI accelerators (such as GPUs from NVIDIA).UBS forecasts that demand for HBM will grow by 90% year-over-year in 2026, reaching approximately 33.1 billion Gb. Demand is expected to grow by another 77% in 2027, reaching approximately 58.7 billion Gb. (Jin10 Data App)