The memory market is doing its best impression of a rocket launch. Prices for key memory chips kept ripping higher into early February, as relentless demand from hyperscalers and cloud providers continues to squeeze supply across the industry.
What used to be viewed as boring, commodity hardware is suddenly one of the hottest corners of the AI trade.
NAND and DRAM Go Vertical
According to Bernstein Research, NAND flash wafer prices jumped 35% between the end of 2025 and early February. NAND is the type of memory that stores data even when devices are powered down, making it essential for everything from smartphones to solid-state drives.
DRAM prices also surged about 28% in the same window. But the longer-term numbers are even more eye-popping. Over the past year, DRAM prices have climbed more than 2,000%, while NAND prices are up over 600%. That is a staggering move for components that were once considered interchangeable and margin-thin.
AI Data Centers Are Driving the Bus
The main force behind this run is demand from cloud service providers building out AI infrastructure. Training and running advanced AI models requires enormous amounts of high-performance memory, and hyperscalers are buying aggressively to avoid bottlenecks.
Bernstein analysts say that while PC and mobile demand has not collapsed yet, future price increases may slow as those segments cool. Still, they expect memory prices to remain elevated throughout the year thanks to ongoing data center demand.
Winners in the Memory Boom
This environment has been a tailwind for memory-focused companies like Micron $MU ( ▼ 0.67% ) and SanDisk $SNDK ( ▼ 2.76% ) , both of which have been standout performers as pricing power has returned to the sector.
If AI keeps driving massive infrastructure buildouts, memory may stay less like a commodity and more like a strategic resource. And that shift could keep the pressure on prices, even if the pace of gains starts to cool from here.