Memory Procurement Outlook: Navigating the Demand Surge

The memory market is experiencing a dynamic evolution, marked by a remarkable upswing in average selling prices (ASPs) and an impressive 87% increase in sales. This surge is driven by a growing demand for memory solutions across sectors like edge AI devices, datacenters, machine learning, the Internet of Things (IoT), and 5G technologies.

As applications become more memory-intensive, particularly with the rise of edge AI and machine learning, the demand for high-performance memory is intensifying. Micron has reported full allocation of its High Bandwidth Memory (HBM) for 2024 and 2025, while SK hynix notes that its HBM supply for 2025 is nearly sold out. This underscores the critical role of advanced memory in supporting AI functionalities.

Additionally, the NAND flash market is gaining traction due to the increasing adoption of datacenter SSDs, which offer superior performance and reliability. This shift is further boosting NAND flash sales as companies respond to their data-driven needs.

Looking ahead, prices for all memory categories are expected to continue rising through the end of 2024 and into the first quarter of 2025, influenced by both demand and supply constraints. Average lead times are projected to lengthen in the first half of 2025, moving from 13 to 14 weeks, which necessitates proactive procurement strategies.

The memory procurement outlook indicates a robust market characterized by soaring demand and rising prices. Organizations must strategically plan their memory acquisitions to meet the needs of increasingly data-centric applications. As AI, edge computing, and datacenter expansion drive this demand, the memory sector is positioned for significant growth, ready to meet the challenges of a rapidly evolving technological landscape.