FundaAI Rejects Memory Oversupply Claims, Predicting High Prices Until 2027

FundaAI disputes TrendForce's oversupply warning, attributing slowed price growth to LTA contracts and structural normalization. The firm forecasts sustained high memory prices through 2027.

Woofun AI reports that FundaAI has issued a rebuttal to TrendForce's assertion of an impending memory oversupply and leveled-off average prices. FundaAI characterizes the deceleration in price growth as structural normalization, driven by consumer electronics' price sensitivity and the rising share of long-term supply agreements (LTAs) with cloud providers. These LTAs, often priced lower than spot contracts, dampen overall average price metrics while securing manufacturer revenue through advance payments. Consequently, FundaAI projects that memory prices will remain elevated until 2027, supported by continued product mix shifts toward data centers, rather than collapsing into a surplus scenario.