Smartphone Mobile DRAM contract prices are maintaining their strong upward momentum in 2Q26. Samsung and Micron were the first to issue quotes, whereas SK hynix and CXMT have only provided tentative pricing so far, with final negotiations expected to conclude in May. Following steep price hikes for two consecutive quarters in 1H26, smartphone brands are finding these cost pressures increasingly difficult to absorb. Consequently, not only are 2026 smartphone production targets facing downward revisions, but brands may also fail to fulfill their previously negotiated LTA bit procurement volumes. Looking ahead, as AI servers continue to crowd out production capacity, smartphone brands must optimize their memory requirements at the software and system architecture levels. This approach is essential for maintaining operational resilience while caught between soaring costs and softening end-market demand.
Driven by supply shortages and bottoming supplier inventories, server memory makers now hold absolute pricing power, leading to continuous and substantial upward revisions in contract prices. Although suppliers are shifting mobile capacity to servers to boost supply, robust demand fueled by cloud providers' expanding capital expenditures on AI and data centers keeps the supply gap wide open. Consequently, the long-term price outlook remains bullish.
PC DRAM contract prices rose this quarter, but momentum slowed. High costs weakened PC sales, cooling negotiations and ending the extreme seller's market. Spot markets stabilized, while long-term contracts anticipate gradual, sustained price increases.
As major manufacturers exit mature processes, the constrained supply of niche DRAM continues to drive contract prices upward in a seller-dominated market, with price hikes shifting toward mid-capacity products. Due to limited capacity, Taiwanese suppliers' strategies are diverging: some prioritize enterprise SSD clients and advance to mainstream specifications, while others continue to rely heavily on legacy products.
Server demand is lifting 2Q26 RDIMM contract prices, while the spot market remains weak. SK hynix has seen a surge in profits and is ramping up mass production of new products. Amid low inventory and capacity bottlenecks, RDIMM prices have overtaken HBM; however, SK hynix is prioritizing long-term balance between HBM and conventional DRAM over short-term gains.
Global Server Market – Trends and Outlook for 2Q26
Global CSPs expand AI infrastructure investment, with Google and Microsoft leading on TPU and GPU racks while Chinese peers diversify amid geopolitical constraints.
Contract price hikes slow, yet LTAs/prepayment lock profit. Spot drops on weak demand. TCO-led CXL complements RDIMM.
AI server demand stays robust with GB leading H1; Rubin ramps in Q3. ASIC share dips slightly as GPU dominates. Component shortages cap general server growth. Liquid cooling competition intensifies.
DRAM supply remains tight across segments; contract prices rise in 2Q26, led by mobile DRAM, as buyers rush to replenish amid shrinking supplier inventory.
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