DDR5 and DDR4 memory prices are expected to see a sharp rise, according to recent estimates, as the 'DRAM supercycle' fueled by AI has gobbled up nearly all the production capacity.
Major DRAM Suppliers Are Expected to Bump Up Prices By 30%, Prompting a Similar Consumer Market Reaction
Before we dive into the post, it's essential not to view it as a source of 'panic', as it focuses entirely on market estimates and the aggressive movement of the DRAM markets in recent months. DRAM has evolved to be a crucial component of the AI supply chain, as it is not only widely used in high-bandwidth memory (HBM) but also companies continue to employ technologies like DDR5 and DDR4 for conventional AI workloads. However, a larger portion of DRAM demand does come from HBM processes, and it has reached a point where companies like Micron are reallocating their production lines to focus solely on DRAM.
According to a new report by ChosunBiz, major DRAM producers such as Samsung and SK hynix are now factoring in a 30% increase in DRAM and NAND flash chips, which could be reflected in customer quotations as early as Q4. More importantly, 'large DRAM customers' are reportedly reserving DRAM production lines for two to three years, and this demand comes entirely from the AI frenzy, since not only is HBM demanded from the likes of NVIDIA and AMD, but custom AI chip solutions are also popping up from tech giants, hence DRAM demand is reaching new levels.
Regarding price trends for DDR4 and DDR5 memory modules, DRAMeXchange indicates that prices have been in an upward trend for several weeks. Notably, the price of DDR5 16 GB has increased by 5% today. The retail situation is also quite similar, with modern DDR5 RAM models, such as the G.Skill Trident Z5 Neo, experiencing a price increase of up to 40% in just a month, reaching an all-time high of €189.90 on Idealo.de. Similarly, retailers such as Amazon and Newegg are also steadily increasing DDR5 memory prices, and this trend is expected to continue in the coming quarters.
The current RAM prices may not appear too inflated, considering that the supply chain has yet to adjust to the increase in DRAM quotations. However, since major producers like Micron, Samsung, and SK hynix are factoring in a price hike, the consumer market is likely to show a similar reaction. Hence, if you are waiting for the right time to upgrade your memory, Q3 could be the last chance to do so, since trends indicate that Q4 2025 and beyond will be a 'pricey period' for consumer RAMs.
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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