AI Industry Demand Fuels Faster Rise in Memory Prices

DDR module manufacturers are reporting a suspension of new orders, and the culprit is the frenzy of demand from the AI industry. The situation developed gradually, but by the end of fall 2025, it had escalated into a full-blown crisis. Key market players, including Samsung, Micron, and SK hynix, have almost completely retooled their production lines to output memory for artificial intelligence needs. This includes both high-performance HBM and standard DDR5, which is being bought up en masse by major tech companies for servers.

The price of 16 Gb DDR5 chips on the spot market has nearly doubled over the past month, and since the start of the year, the total price increase for memory modules has exceeded 170%. This has directly impacted retail, with memory modules from popular brands like Corsair and Adata seeing price jumps of 20-40% in just a few weeks.

Manufacturers' attempts to ramp up production of consumer memory have so far yielded no results. According to industry experts, the shortage and high price levels are expected to persist at least until spring of next year. This means those who postponed buying RAM may face the necessity of paying a premium. The current situation is reminding many of the recent graphics card crisis, which was also largely triggered by external factors rather than the actual needs of average users.

A similar crisis, albeit with a different catalyst, has already occurred. For instance, in 2017-2018, DRAM prices soared by over 130% due to manufacturers transitioning to more refined processes, which reduced the yield of usable chips, combined with explosive demand for memory from the growing smartphone and server markets. Back then, the problem was resolved relatively slowly — as Samsung, SK hynix, and Micron mastered new production lines and increased overall output, the balance between supply and demand was gradually restored by 2019.

However, the key difference in the current situation is its structural nature. If the previous price hike was related to balancing capacity within the consumer sector, today's shortage is triggered by the emergence of a new, gigantic, and financially potent player — the artificial intelligence industry. Demand from this side is not only enormous but is predictably long-term, as building AI infrastructure is a strategic priority. Expecting manufacturers to switch back to catering to the needs of average users as quickly as in the past is unlikely.