Normal memory prices may not return before 2027. Yole Group shows how the explosive growth of artificial intelligence is reshaping the global DRAM market and sustaining price increases. Hyperscale data centers are absorbing an unprecedented share of memory supply, leaving other industries increasingly exposed to shortages and higher costs.
John LorenzDirector, Memory & Computing at Yole Group
If you are a company that wants to build new smartphones or PCs, you need DRAM to put in your devices. And if you see that a lot of capacity is being shifted to supply server demand, you become concerned about the availability of your own supply, and you try to buy more than you need. It’s psychological. This fear of scarcity tomorrow is driving the price movements of today.
Memory is a critical component across the electronics industry. From smartphones and PCs to cars and data centers, DRAM availability and pricing directly influence production costs and product strategies. In this context, John Lorenz explains why the current price surge is not a temporary spike, but the result of structural changes driven by AI.
Some downstream markets are already feeling the impact. Spot prices for server-grade DDR5 have surged by as much as 100% in some cases, according to Yole Group. PC manufacturers are among the first affected: companies such as Hewlett Packard and Dell have warned they may remove certain laptop models from their portfolios, either because memory has become too expensive or because securing sufficient supply is increasingly difficult.
