What the DRAM Price Surge Means and Why It’s Happening
The current DRAM price surge is a rapid, multi‑quarter jump in the cost of mainstream memory chips, driven by intense AI demand that is redirecting supply away from consumer electronics and creating a broader memory shortage crisis across PCs, phones, consoles, and other devices. Data center and AI workloads increasingly rely on high‑performance DRAM, encouraging manufacturers to prioritize lucrative AI‑oriented products over general‑purpose DDR4 and LPDDR chips. As a result, consumer memory buyers now compete with hyperscale AI infrastructure for limited wafer capacity. Analysts warn that this imbalance is structural, not a short‑term shock, because building new fabs and ramping advanced nodes takes years. Until that extra capacity arrives and AI demand cools, DRAM prices are expected to stay high and volatile, embedding higher memory costs into almost every consumer device.
Q2 DRAM Shock: DDR4 and LPDDR Prices Explode
The most visible sign of the memory shortage crisis is the brutal quarter‑to‑quarter jump in consumer DRAM pricing. Research from SigmaIntel shows that consumer‑focused DRAM prices swelled by up to 89% in the second quarter versus the first. A 16 Gb (2 GB) DRAM module climbed from USD 19.2 (approx. RM90) to USD 28.5 (approx. RM135), a 49% increase, while a 16 GB DDR4 stick rose from USD 137 (approx. RM650) to USD 207.1 (approx. RM980), marking about a 51% surge. On the mobile side, 32 Gb (4 GB) LPDDR ICs jumped 75%, and 96 Gb (12 GB) LPDDR5X modules logged the single biggest move, rising 89% from USD 77.1 (approx. RM365) to USD 145.9 (approx. RM690). This DDR4 price increase and LPDDR spike underline how AI demand for memory is starving traditional consumer channels of supply.
AI Demand Memory Crunch: Why Supply Is Locked Up
Behind the numbers is a clear shift in how DRAM makers allocate their output. With AI infrastructure on top of the profit list, manufacturers are channeling wafer capacity toward high‑value data center memory, leaving general‑purpose DRAM such as DDR4 and LPDDR to absorb the brunt of shortages. According to Jefferies, memory prices in the third quarter can rise between 40% and 50% sequentially, with another 30% to 40% increase possible in the fourth quarter. This reflects not just higher costs, but a market where AI demand memory priorities outrank consumer needs. Reports suggest that some producers may pivot slightly back toward general‑purpose DRAM, but mainly to capture more profit rather than to stabilize consumer supply. Until fabrication capacity expands, AI data centers will continue to soak up available DRAM, keeping consumer segments under pressure.
Consumer Electronics Pricing: PCs, Phones and Consoles Squeezed
The DRAM price surge is already visible in consumer electronics pricing. DDR4 modules that used to retail for around USD 60–70 (approx. RM280–RM325) now sell at 2–3 times their earlier rates, while 16 GB DDR5 kits that were widely available at USD 90–100 (approx. RM420–RM460) have also multiplied in price. Storage has followed the same path: a 512 GB NVMe Gen4 SSD is now at USD 126.3 (approx. RM600), about 54% higher than the previous quarter, and even discounted 1 TB Gen4 SSDs that once sold for USD 70–80 (approx. RM325–RM370) are now in the USD 130–150 (approx. RM605–RM700) bracket. Smartphone storage is worse, with 256 GB UFS 3.1 up 103% to USD 62.7 (approx. RM295). Laptop and smartphone makers, along with gaming console vendors, have raised device prices, as memory and storage shortages feed directly into end‑user costs and reduced promotions.
Outlook Through 2028: Persistent Shortages, Then Late Relief
Forward guidance from financial analysts suggests that this memory shortage crisis will not ease quickly. Jefferies expects DRAM prices to keep rising through the second half, with quarterly increases that could reach 50%. The expert cited in its report outlines that in 2027, memory prices could jump by 40% to 45% annually if supply constraints persist. Other research points to shortages lasting up to 2028, indicating that consumer electronics pricing will remain under pressure for several product cycles. On the supply side, aggressive investments by Chinese memory firms may add several million wafers per month around the second half of 2027, but technology gaps mean their impact on global pricing is seen as limited until 2028. Only then are average selling prices expected to fall by roughly 15% to 20%, as added capacity and a possible slowdown in AI demand begin to restore balance.
