AMD Believes the Memory Market Crisis Will Last Several More Years

Anyone hoping for a quick drop in RAM prices for building or upgrading a PC should rethink their plans. AMD has unofficially advised patience for at least two more years. According to the latest forecast, the shortage and high prices of DDR5 modules will continue throughout 2026 and 2027, with a return to normal pricing not happening before 2028.

This statement came from David McAfee, Vice President and General Manager of AMD’s Client Channel, speaking behind closed doors at Computex 2026. The executive made it clear that the current market situation isn't a short-term spike but a drawn-out structural crisis driven by a global industry overhaul. Explosive demand for high-speed memory chips from data centers powering generative AI and machine learning has forced manufacturers to radically restructure their production chains. Major vendors, including Samsung and Micron, are now heavily investing in expanding their fabs and ramping up DDR5 production, but that still won't instantly satisfy market demand.

Adding further pressure is the industry-wide tech transition from DDR4 to DDR5. As the AMD rep explained, over the last couple of years, fabs have deliberately cut back on fourth-gen module production, reallocating resources to the more in-demand memory, which pushed DDR4 capacity down to minimum levels. The result is a vacuum: the old standard is barely being produced, while the new one can't keep up with the frenzy from the AI sector and consumers.

According to the source cited by foreign tech media, DDR5 kit prices in some regions have already hit all-time highs, exceeding typical values by 4–5 times. Many budget-conscious users are left with no choice but to artificially extend the life of their DDR4-based platforms, even though DDR4 prices have also spiked due to increased demand.

The memory market has always moved in cycles — periods of shortage followed by oversupply and price drops — but the current cycle is different from previous ones. Even with active attempts by China's ChangXin Memory Technologies and other players to grab their share, manufacturing capacity simply isn't enough to cover the needs of AI infrastructure and gamers at the same time. In effect, AMD's forecast backs up earlier, often more pessimistic analyst reports that the memory shortage in the consumer segment will last at least through the end of 2027. That said, the company adds an important caveat: the situation could change if there are unforeseen shifts in the AI market.

Given this news, are you planning to build a new DDR5 system now, or will you extend your current PC's life until better times? Let us know in the comments.