The DRAM market is currently facing significant challenges as prices reach unprecedented levels. This situation is expected to have a major impact on the consumer memory industry, with manufacturers beginning to report inventory shortages.
Rising DRAM Costs and Market Pressures
As the AI memory cycle has consumed the majority of production capacity, the DRAM market is under immense pressure. The overwhelming demand from the AI sector has compelled companies like Samsung, Micron, and SK hynix to reallocate their production priorities. Reports suggest that Samsung, one of the leading DRAM manufacturers, has stopped contract pricing for DDR5 DRAM, with other companies potentially following its lead.
DRAM spot prices surged dramatically in 2025. DDR5 16Gb spot prices nearly doubled in the last month, reaching a record $15.50. This upward trend is expected to persist into next year, as the high demand continues to strain supply throughout Q1 2026. A significant factor driving the increase in DDR5 prices is that much of the production is being directed towards CSPs and AI giants. Alongside HBM, consumer memory like DDR5 and DDR4 is also being used extensively in various CSP environments.
Implications for Consumers
This situation has led Samsung and other DRAM manufacturers to pivot their resources towards DDR5 and HBM, leveraging the enormous demand. Unfortunately, consumers are poised to bear the brunt of these changes. Memory module prices from brands like Corsair and Adata have been steadily climbing since Q3, with retail prices rising by at least 20% to 40% over recent weeks due to supply constraints. As AI giants secure long-term contracts with DRAM suppliers, the consumer market is likely to face further difficulties ahead.
While the DRAM industry finds this situation promising, consumers should not delay their memory purchases, as prices are anticipated to continue rising. The upcoming deals season might offer some relief with moderate discounts, so staying alert for potential savings is advisable.