RAM prices are skyrocketing, as evidenced by the 172% increase in the spot market since July. This is having an impact on final prices, and consumers are finding themselves footing the bill. At present, it’s hard to find a 32 GB DDR5 pack under €200 in the stores. The culprit? AI’s delirious demand and grotesque appetite for memory!
AI responsible for 172% rise in RAM prices!
Broadly speaking, memory prices are going through the roof. Clearly, AI’s huge appetite in the sector is responsible for these price hikes, since this sector is completely cannibalizing stocks and production of memory chips. To give you an idea, Samsung and Sk Hynix, two of the world’s leading producers, are unable to meet all orders. Currently, the order fill rate is around 70%, so they can’t keep up with demand. Worse still, safety stocks are also being swallowed up, driving up prices.
Specifically, it is mentioned that a manufacturer who was to pay for a 16 GB chip $7 is now paying $13… The price is x2. So it’s hardly surprising to see prices skyrocket, even in the consumer sector. It’s a safe bet that SK Hynix, Samsung or even Micron will redirect production lines towards server RAM, which is currently in high demand (and more profitable), and away from consumer memory.
The effects are already being felt, as Top Achat (French Retailer) no longer lists any 32 GB (2×16 GB) DDR5 kits under €200. Even the entry-level Textorm kits are around €215 for 6400 MT/s. On Amazon, popular Corsair Vengeance-type kits are at €153 with a 24% discount, where they could be had for under €100 last August/September.
If ADATA’s CEO is to be believed, these outrageous prices are likely to continue. For his part, the CEO of Phison Electronics says they could last a decade.
