May 8, 2025 /SemiMedia/ — ADATA Technology said growing AI demand is changing the balance of the memory market, with supply expected to remain tight through next year as DRAM and NAND prices continue to rise.

The company said DRAM pricing started to move up in the first half of the year, while NAND Flash is expected to see stronger momentum in the second half. Demand from AI servers, enterprise storage systems and AI edge devices is driving higher consumption of memory products across the market.

ADATA believes AI workloads are expanding quickly from cloud training systems to enterprise and end-device applications. As AI inference demand grows, higher-capacity and higher-speed memory products are becoming more important for data center and AI hardware platforms.

To prepare for stronger demand, the company has continued building inventory. ADATA said inventory reached about NT$36.4 billion (around US$1.16 billion) at the end of the first quarter and increased to more than NT$40 billion (around US$1.27 billion) by the end of April. Most products were sourced directly from upstream memory makers, helping the company maintain better cost control and supply flexibility.

The company said its current inventory mix is about 55% DRAM and 45% NAND Flash, with NAND accounting for a larger share than before as it prepares for expected price increases later this year.

ADATA also said it has seen rising inquiries from new AI-related customers in recent months, including cloud service providers looking for long-term supply partnerships. However, the company said priority will still be given to existing long-term customers while supply remains limited.

On concerns that expanding memory production in China could pressure pricing, ADATA said the impact should remain limited in the near term because the global supply gap is still large and new capacity will take time to affect the market.

Industry observers believe the memory sector is entering a new cycle driven more by AI demand than by traditional consumer electronics trends. For companies holding large inventories, including ADATA with inventory now exceeding NT$40 billion (about US$1.27 billion), rising memory prices could further support profit growth in the coming quarters.