The memory market is entering a tumultuous period, with skyrocketing prices for both DDR5 and DDR4 memory driven by heightened demand from the AI sector. This surge in demand is affecting the availability and cost of tech products, and reports suggest the situation may not stabilize until 2027.
Memory Prices Surge Amidst AI Demand
Recently, the tech world was shaken by the news of Micron discontinuing its consumer brand, Crucial. The decision, attributed to the overwhelming demand from the AI industry, has pushed prices for memory kits, SSDs, and GPUs higher. The scenario resembles a perfect storm, combining the effects of the crypto boom, COVID-induced shortages, and the scalper era into one massive challenge.
Industry insiders predict that the current memory shortages, affecting products like DDR5 and DDR4, will persist until late 2027. Such a prolonged shortage means consumers might not see price normalization until 2028. Products reliant on DRAM, such as desktop PCs, laptops, and consoles, are already experiencing price hikes.
The Impact of AI on Memory Markets
The demand from AI-driven data centers is squeezing the market as these entities are willing to pay a premium for memory and storage. Micron’s decision to exit the consumer market highlights the potential profits in catering to AI over traditional markets. Other major suppliers, such as SK hynix and Samsung, are also eyeing AI-driven profitability despite the impact on consumer availability.
We have indeed observed noticeable upward pressure on prices across the NAND and DRAM markets. The current situation is not merely a matter of price fluctuation but a result of an unprecedented supply shortage, primarily driven by surging demand for AI and DDR5 server platforms. In addition, as data storage demand in data centers continues to grow while hard drive manufacturers have yet to expand production, cold data storage has gradually shifted toward SSDs, further tightening NAND Flash supply.
With wafer foundries and component suppliers already operating near full capacity, all categories of DRAM products — including DDR5, LPDDR5, GDDR6, GDDR7, and DDR4 — are facing widespread shortages, and the supply-demand imbalance is expected to persist through at least the first half of next year.
While the market remains dynamic, we continue to leverage strong partnerships and agile inventory management to maintain supply stability and strengthen our foundation for future growth.
via Teamgroup General Manager – Chen Qingwen
The current price levels aren’t even the peak, which analysts predict will occur in mid-2026. Memory prices have seen dramatic increases, with some products costing two to four times more than just a few months ago. Memory suppliers are experiencing high volatility, with rapid price changes and pressure to secure supply quickly.
Future Outlook and Consumer Impact
Current retailer data paints a grim picture with prices for memory products, such as 256 GB DDR4 kits, surging past $3000 USD. Prices for DDR5 kits are similarly climbing, nearing the $2000 USD threshold. According to PCPartPicker, the trends in memory pricing from May to December 2025 show significant hikes across various DDR4 and DDR5 models.
Consumers have weathered similar storms before, and patience may be their best strategy as the market works toward eventual stabilization. As the memory market continues to evolve, it remains to be seen how quickly prices and availability will return to previous norms.