18th Nov 2025
Driving the Surge in Demand for Memory…..
The global memory market has always been volatile driven by OEM’s, whether that be Mobile Phones, Games Consoles or EV’s, but we are now seeing a new chapter with unprecedented drive in demand from Artificial Intelligence.
What started as a steady stream in 2023 has accelerated 10-fold due to datacentres, and OEMs racing to build AI infrastructure at a scale never seen before. This major surge in memory demand to feed the AI-driven consumption, is absorbing a vast amounts of DRAM and NAND.
As memory is treated like any commodity, major manufacturers have reacted with increased price rises…however this hasn’t deterred any demand which remains resilient, so strong is the demand that global supply is contracting forcing allocation to bite.
Prioritised production for high-density DDR & SSD’s continue components – DDR5, HBM, and enterprise-grade SSDs – leaving limited availability for traditional product lines.
Simms (a specialist memory distributor and trusted partner for IT resellers, System Integrators, OEMs and Datacentres), anticipates this dynamic may define the next 24 to 36 months, marking the start of a super cycle notseen before in memory world and beyond.
The combination of AI, data growth, and compute intensity is transforming memory demand from cyclical to strategic – driving a sustained period of price elevation, constrained allocation, andlong-term supply challenges.
Key points to takeaway from the evolving AI growth……
- AI driving growth setting new records in memory demand.
- Prices up by 130% across key DRAM and NAND.
- Many lines moving to allocation with lead times extending significantly.
- Supply will remain tight through 2026-2027 as production expansion lags that of demand.
Beyond 2027 will be hard to predict as technology progresses, but as AI penetrates more into every sphere of life, the demand is sure to continue.
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