The RAM Price Surge: Another consequence of the AI Boom?

What are the current conditions of ram pricing?

The current state of the Random Access Memory (RAM) market is one of rapid and significant price inflation, affecting both newer DDR5 and older DDR4 memory modules. Retail prices for popular DDR5 kits have seen notable increases, in some cases doubling since late summer/early autumn of 2025. DDR4 prices have also climbed dramatically, eroding their long-standing value proposition.Major DRAM producers like Samsung and SK Hynix have been reportedly raising the contract prices they charge for DRAM chips by substantial amounts (up to 30% or more for Q4 2025 quotes). Industry analysts predict that the upward price trend will continue into 2026, with some forecasts suggesting a prolonged memory shortage lasting several years.

What’s fueling the surge in the price of memory?

• AI Data Center Appetite: The global build-out of AI infrastructure (training large language models, etc.) requires colossal amounts of memory, far exceeding previous enterprise demand.
• High-Bandwidth Memory (HBM) Priority: Memory manufacturers are strategically shifting a significant portion of their production capacity away from consumer-grade DDR4 and DDR5 chips to focus on High Bandwidth Memory (HBM), which is essential for high-margin AI accelerators like NVIDIA GPUs. This shift shrinks the available supply for the consumer and general PC market.
• Stockpiling: Cloud service providers and large tech companies are aggressively buying and stockpiling DRAM (and NAND flash storage) to secure inventory through long-term contracts, further tightening the remaining market supply.
• DDR4 Phase-Out: Simultaneously, major manufacturers are reducing or halting production of older DDR4 to dedicate capacity to DDR5 and HBM, causing prices for the older standard to spike due to scarcity.