Memory chip contract prices increased by nearly 20% quarter-over-quarter in the third quarter of 2026, as supply shortages continued across the industry, according to research firm Bernstein.
Contract pricing data showed increases in both conventional dynamic random-access memory (DRAM) and NAND flash memory during the quarter. Although the pace of price growth moderated compared with the second quarter, the increases remained elevated relative to historical levels.
Bernstein attributed the continuing supply constraints largely to demand from artificial intelligence applications, which the firm said continues to exceed available memory chip supply.
The research firm expects these conditions to contribute to further contract price increases during the fourth quarter of 2026, with supply shortages projected to extend into 2027.
However, Bernstein indicated that the scope for additional price increases could narrow over time. Long-term supply agreements containing price caps may limit further adjustments, while higher memory costs are placing additional financial pressure on customers across AI and non-AI applications.
According to Bernstein, demand associated with AI infrastructure remains a significant factor in the imbalance between memory chip supply and consumption. Meanwhile, applications outside the AI sector are also experiencing increased costs as memory prices remain elevated.
The firm’s outlook suggests that pricing conditions will continue to be influenced by supply availability, AI-related demand and contractual pricing restrictions through 2027.