Flash Memory Prices Set to Jump Up to 70% as AI Servers Drain Supply [Report]

Flash storage prices are climbing much faster than anyone anticipated. New supply chain data indicates that contract prices for NAND flash are set to jump between 60 and 70 percent in the first quarter of 2026 as manufacturers prioritize supply for the artificial intelligence sector.



The surge is being driven by the massive deployment of AI servers, which require immense amounts of high-speed storage. According to DigiTimes, the demand is so intense that SanDisk has reportedly proposed raising some contract prices by as much as 100 percent. That exceeds earlier industry forecasts, which had pegged the increase at a more moderate 30 to 40 percent.


Major players like Samsung Electronics, Micron, and SK Hynix have reportedly hit pause on quotations to reset the market. New pricing is expected to be finalized in the coming weeks, with overall increases likely starting around 50 percent. It is a seller-driven environment, allowing manufacturers to finally offset years of previous losses and potentially push operating margins above 40 percent.

This creates a serious squeeze for consumer electronics makers. Suppliers are prioritizing high-value enterprise and data center clients, leaving mid-to-low-end consumer applications fighting for allocation. The tight supply lines up with recent warnings that rising component costs could drag down smartphone shipments and shrink the notebook market in 2026.

Apple usually secures favorable terms thanks to its massive scale and long-term contracts, but hikes of this magnitude eventually weigh on the bill of materials. Analysts have noted that while the memory market is putting pressure on competitors, Apple is generally better positioned to navigate the volatility.

Please download the iClarified app or follow iClarified on X, Facebook, YouTube, and RSS for more supply chain updates.