December 27, 2024 /SemiMedia/ —  TechInsights recently released a report predicting significant growth in the memory market, including DRAM and NAND, by 2025. This growth is primarily driven by the accelerated adoption of artificial intelligence (AI) and related technologies.

According to the report, the demand for high bandwidth memory (HBM) is rising sharply, driven by the rapid expansion of data-intensive AI applications, such as machine learning and deep learning. By 2025, HBM shipments are expected to grow by 70%, as data centers and AI processors increasingly rely on HBM to handle low-latency, high-throughput data. This surge in demand is expected to reshape the DRAM market, with manufacturers prioritizing HBM production over traditional DRAM products.

Additionally, TechInsights forecasts that capital expenditure (CapEx) in the memory market will increasingly flow into DRAM, particularly HBM, by 2025. DRAM CapEx is expected to grow nearly 20% year-on-year to support manufacturers' efforts to expand capacity. However, this shift may result in reduced investment in NAND production, potentially leading to supply bottlenecks in the market. Despite this, improved profitability in the NAND sector is expected to reignite investment interest in 2026.