UBS: High-bandwidth memory demand is expected to grow by 90% year-on-year in 2026, with a further 77% increase in 2027

Odaily reports that UBS has stated that as artificial intelligence (AI) demand continues to grow and long-term supply agreement (LTA) negotiations are still underway, the storage chip market cycle is "further strengthening," with a structural supply shortage expected to last at least until mid-2028.

UBS expects total annual revenue for the storage chip industry to reach $992 billion in 2026. By 2027, this figure is projected to nearly double to $1.76 trillion. The main driver behind this growth is high bandwidth memory (HBM), a type of DRAM dedicated to AI accelerators such as NVIDIA's GPUs. UBS forecasts that demand for HBM will grow by 90% year-on-year in 2026, reaching around 33.1 billion Gb. In 2027, demand is expected to rise another 77% to about 58.7 billion Gb. (Golden Ten Data APP)