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Bernstein Forecasts Major Memory Price Hikes in Q2 Driven by Server Demand
Summary
Analysts at Bernstein project a significant increase in memory chip prices for the second quarter of 2026, citing robust server demand that is absorbing available supply and stabilizing spot prices.
Memory chip prices are poised for a significant increase in the second quarter of 2026, fueled by persistent strength in the server market, according to a new analysis from Bernstein. The firm reports that both DRAM and NAND contract prices have already registered modest month-over-month gains, signaling a more pronounced upward trend ahead.
Server Demand Absorbs Supply
The primary driver behind the anticipated price surge is robust demand from the server segment, which Bernstein notes is successfully absorbing the incremental supply being allocated by manufacturers. This strong enterprise demand is currently offsetting potential weakness elsewhere in the market.
In the consumer segment, a feared slowdown has been more limited than expected, an outcome Bernstein attributes to pulled-forward purchases. However, the firm maintains its view that demand destruction in consumer electronics will eventually materialize.
AdPrice Outlook and Normalization
While Q2 is expected to see a major price increase, Bernstein anticipates the pace of these gains will narrow notably heading into the third quarter of 2026. The firm also observed that spot prices for memory components appear to be stabilizing.
Looking further ahead, Bernstein's models project a gradual market peak, with prices beginning to normalize from the second half of 2027 into 2028. The impact of any future correction could be mitigated by long-term supply agreements, on which the firm expects more clarity as they are signed.