JPMorgan Lifts Memory Market Outlook to $1.7 Trillion by 2028 as AI Reshapes Demand

JPMorgan sharply raised its global memory market forecast, projecting the total addressable market will reach $1.7 trillion in 2028, a 37% to 53% increase from its March model. The bank said memory chips are transitioning from cyclical commodities to strategic assets within AI infrastructure. DRAM revenue is seen surging to $1.237 trillion by 2028 from an estimated $143 billion in 2025, while NAND is expected to expand to $454.5 billion from $71 billion. The revision follows stronger-than-expected CPU demand that adds to GPU-driven memory consumption, tightening supply. High-bandwidth memory (HBM) supply is forecast to remain in a double-digit deficit through 2028, with mixed HBM average pricing hitting a record in 2027. Memory now represents more than 50% of cloud service providers’ hardware capital expenditure, a share JPMorgan sees reaching 73% by 2030. The bank argues traditional cyclical valuation frameworks no longer apply, given AI’s structural demand shift, and maintains a multi-year bullish stance on the sector.