Memory contract pricing is rising at a rate never seen before, and according to a new report, QoQ quotations have almost doubled amid gigantic demand.
DRAM Prices Are Expected to Double This Quarter Alone, As Most of the Allocations Will Be Towards Hyperscalers
Well, memory shortages have been a topic of discussion at the outlet several times now, and it is important to discuss key developments with our readers to ensure they are "mentally prepared" for the craziness ahead. A report by DRAMeXchange, an outlet that extensively tracks DRAM and NAND contract pricing, states that price negotiations between memory suppliers and hyperscalers are ongoing. And, based on initial information, Micron has become the first to submit a proposal, citing a whopping 115% to 125% increase in contract pricing compared to Q4 2025.
It is evident that DRAM price hikes aren't going to stop, and more importantly, most of the LTAs being signed this quarter are dedicated to server DRAM, given that the PC retail industry is reporting a decline in yearly shipments. Most of the memory demand is already moving towards the AI industry, with it spread across hyperscalers, chip manufacturers, and server ODMs. And interestingly, DRAMeXchange claims that memory is entirely a "seller's market" right now, with little leverage for buyers in terms of volume procurement.
TrendForce expects DRAM prices to rise by 90% to 95% this quarter, in line with other industry estimates. If DRAM spot prices double in just a single quarter, you could only imagine the effects it would have on consumer products, especially at a time when newer laptops powered by Intel's Panther Lake and AMD's Gorgon Point platforms are rolling out. Similarly, for consumer GPUs, the situation is terrible as well, given that GDDR modules will likely follow a similar price trend to DRAM.
Micron has already revealed that its fab buildout plans won't have any meaningful effect until 2028, and at the same time, suppliers are skeptical about aggressively ramping DRAM production, so we could expect these shortages to persist for several quarters.
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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