April 3, 2025 /SemiMedia/ — NAND flash prices have been rising for three consecutive months, reinforcing the outlook for a recovery in the memory market. Driven by growing demand for artificial intelligence (AI) applications, the information technology (IT) sector is expanding, boosting expectations for major semiconductor manufacturers such as Samsung Electronics and SK Hynix.

According to DRAMeXchange's April 1 report, the average fixed transaction price of general-purpose NAND flash (128Gb 16Gx8 MLC) rose to $2.51, up 9.61% month-on-month. This marks the largest single-month increase since March 2017 (13.87%). NAND prices have been on an upward trend since rebounding in January 2024, following four consecutive months of decline from September to December 2023. Meanwhile, the fixed transaction price of DDR4 DRAM for PCs has remained stable at $1.35 since November 2023.

The price recovery is primarily driven by supply-side adjustments. Global memory chip manufacturers reduced large-capacity NAND production during the economic downturn, gradually restoring supply-demand balance. TrendForce expects enterprise SSD demand to rebound in the second quarter of 2024 following an adjustment period, fueled by AI industry growth. The introduction of China's DeepSeek is also anticipated to accelerate AI adoption and data center expansion, further driving enterprise SSD demand.

Rising consumer demand for AI-enabled mobile devices is another factor supporting the memory market. Gartner forecasts global spending on generative AI to reach $644 billion in 2024, a 76.4% increase from the previous year, with AI smartphones and PCs accounting for 80% of total spending.

In response to the demand recovery, memory chipmakers are exploring price hikes and production expansion. Micron Technology, the world's third-largest DRAM supplier, announced a price increase on March 25, citing "unexpected growth in demand across memory-related sectors." U.S.-based SanDisk has also raised NAND prices by more than 10% starting in April.