Jefferies Warns Memory Prices Will Surge 50% in Q3 2026 and Another 40% in Q4, With No Relief Until 2028

Memory prices are all set to rise further in the coming quarters of 2026 as persistent shortages continue to grip the market.

Memory prices are expected to surge by 50% in Q3 2026, followed by another 40% increase in Q4, according to Jefferies. This forecast is based on persistent shortages in the market, which have been ongoing due to various factors. The shortages have led to a significant increase in prices, with no relief expected until 2028. Jefferies' warning suggests that the market will continue to face challenges in meeting demand.

The surge in memory prices will directly impact the cost of tech products, making them more expensive for consumers. For instance, the price of a new laptop or smartphone may increase by a significant amount, affecting the purchasing power of individuals. This price hike will be felt by consumers who are planning to buy new devices in the coming quarters. The increased cost will be a significant factor in their purchasing decisions.

The current shortage in the memory market is not a new phenomenon, as the industry has been facing challenges in meeting demand for several years. The COVID-19 pandemic exacerbated the situation, leading to a significant increase in prices. Insiders know that the shortage is due to a combination of factors, including supply chain disruptions, increased demand, and limited production capacity. This historical context suggests that the market will take time to recover.

In the coming weeks, investors should watch for quarterly earnings reports from major tech companies, which will provide insight into the impact of the price surge on their bottom line. A key date to watch is the release of Jefferies' quarterly market forecast, which will provide more details on the expected price increases. Surprisingly, some analysts believe that the shortage may actually benefit smaller tech companies, which have been able to negotiate better prices with suppliers due to their smaller scale.