According to the Financial Times, SK Hynix currently holds only about four weeks of inventory for DRAM and NAND flash memory. Driven by growing demand from advances in artificial intelligence (AI) services amid constrained supply, analysts expect the upward trend in memory prices to continue this year. Some observers believe the market has entered a supplier-driven phase.

As reported by U.S. financial blog Zero Hedge on the 21st, SK Hynix shared this outlook in recent discussions with Goldman Sachs researchers, including Guinee Lee.

Lee noted that SK Hynix expects “heavy investment to continue as customers make significant progress in developing AI services.” He added: “While PC and mobile users may reduce specifications amid sharp price increases, which could dampen demand, the upward price trend is likely to persist due to limited supply expansion capacity.”

He also pointed out that “industry-wide shortages in cleanroom space have tightened supply constraints and created a favorable environment for price hikes.” Meanwhile, he analyzed that “customers recognize the difficulty of significantly expanding production capacity in the short term, making it unlikely for them to place duplicate orders to secure volumes as they did in the past.”

Specifically, SK Hynix’s DRAM and NAND inventory has fallen to around a four-week supply level, which is seen to further strengthen the company’s bargaining power as a supplier. “Solid inventory management and a tight supply-demand environment are favorable for negotiating long-term contracts,” Lee explained. He added: “The current shortage of DRAM relative to demand may also benefit the expansion of the HBM business in 2027.”

The company’s process upgrade roadmap remains largely in line with previous expectations. Lee stated: “The 1‑nanometer process will be mainly applied to DRAM starting in 2026, and fully adopted for HBM from 2027.” He also noted that “the capital expenditure focus for DRAM and HBM is consistent with earlier guidance.”