Citi Report: AI's "continuous learning" will lead to memory supply-demand imbalance, with DRAM and NAND shortages expected to persist until 2031.
Citi stated in a report on September 14 that as AI enters the "continuous learning" era, demand for HBM, server DDR5, and enterprise solid-state drives (eSSD) will experience explosive growth starting in 2027. Citi expects the DRAM supply/demand ratio (S/D ratio) to worsen to -8.7% and -9.7% in 2027 and 2028, respectively, while the NAND S/D ratio will also fall to -6.1% and -5.5% during the same period, with the supply-demand imbalance projected to continue until 2031. The report also forecasts that global memory capital expenditure will surge by 46.5% year-on-year to $80.4 billion in 2027, but due to the limitations of capacity build-out cycles, it will be difficult to close the supply-demand gap.
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