Severe inventory depletionMarket sentiment has taken a hit in recent weeks amid debates over whether dynamic random-access memory (DRAM) and NAND flash memory cycles are peaking. However, Citi's analysis shows that inventory levels across the memory ecosystem remain at critically low levels compared to historic norms. "Contrary to market concerns, we find memory inventory levels to be materially low at both memory suppliers and their customers," Citi analysts wrote in the note. "With a lean memory inventory situation across the supply chain, rising demand will result in persistent undersupply." The bank estimates CMX NAND demand will reach 34.6 billion 8Gb equivalents, before expanding to 115.2 billion 8Gb equivalents - accounting for roughly 2.8% and 9.3% of total global NAND demand, respectively.