Industry: DRAM Market Set for Recovery Next Quarter

Micron Technology's latest earnings forecast has surpassed market expectations, aligning with earlier projections from Nanya Technology Corporation that the DRAM market could reach its lowest point in the first half of the year. A potential recovery may begin in the second quarter, driven by regional economic stimulus measures and an anticipated rebound in consumer demand.

Nanya Technology has previously highlighted that AI-driven demand continues to support DRAM consumption in cloud data center servers, while edge AI computing is gradually expanding into end-user applications such as AI PCs, AI smartphones, and AI-powered robotics. However, demand recovery for general PCs, smartphones, and consumer electronics remains limited.

On the supply side, Nanya Technology observed that DRAM production is expected to increase throughout the year, with a growing share allocated to HBM and DDR5 technologies. Meanwhile, inventory levels of conventional DRAM products such as DDR4, LPDDR4, and DDR3 are gradually declining.

ADATA has also indicated that customer demand is rebounding, with second-quarter orders expected to surpass those of the first quarter. The company anticipates that the first quarter will mark the lowest point of its operational performance, with gross margins likely to stabilize.

Team Group has projected that major NAND Flash manufacturers will actively reduce production to maintain supply-demand balance. Market expectations suggest that NAND Flash inventory replenishment could begin in the second quarter, while DRAM pricing trends will be influenced by factors such as supply-demand dynamics and the adoption of AI PCs. Once inventory levels normalize, end-market demand is expected to strengthen in the second half of the year.

Phison Electronics Corporation CEO Pua Khein-Seng has also noted that flash memory suppliers are adjusting market prices through production cuts. Some suppliers have already raised their prices, signaling a potential positive shift in market conditions.