DRAM shortages are expected to become more aggressive moving forward, and according to a new report, DRAM contract prices could rise by up to 50% in Q1 2026.
PC Manufacturers Are Rushing to Secure Supply, but DRAM Contract Prices Will Force them To Raise Prices
In our in-depth coverage of memory shortages, we discussed how 2026 would likely prove to be a troublesome year for gamers, considering that the ongoing DRAM supercycle was projected to exacerbate the issue, making it more difficult for manufacturers to secure supplies. And, judging by the evolution of the AI industry, a commentary by DRAMeXchange reports that DRAM contract prices in Q1 2026 are projected to rise by up to 50%. This is a massive increase that is expected to disrupt the PC supply chain.
This situation strengthens the suppliers' pricing power while deteriorating the cost structure of PC OEMs dependent on module houses. The rise in DRAM prices is projected to hinder future sales momentum and increase the likelihood of further declines in inventory levels.
Manufacturers are rushing to enter long-term agreements (LTAs) with memory suppliers, as evolving contract prices are forcing them to acquire inventory at higher costs. Mainstream PC OEMs are claimed to have just a few weeks of DRAM supply left, and given that we are entering an 'upgrade cycle' following CES announcements, manufacturers are looking to secure LTAs for the entire year. However, since this is a seller's market, PC OEMs are expected to pay a substantial sum to ensure they can meet consumer demand.
More importantly, for suppliers like SK hynix and Samsung, the primary focus is on profitability. This is why, apart from catering to the AI segment, these suppliers are also scrutinizing their customers in the PC industry, which is one of the reasons why mainstream OEMs are expected to benefit from the situation. Firms like Lenovo and Dell are already known to be preparing for extensive price hikes this quarter, which would likely be reflected in their upcoming products.
The memory shortages aren't expected to calm down anytime soon, and with the data center buildout evolving at a rapid pace, DRAM suppliers are struggling to keep up with demand. This is why, for consumers, DDR5 and DDR4 memory prices are expected to rise significantly, even after their recent historical increases.
News Source: Jukan
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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