DDR5 RAM has gained widespread adoption as the new standard for consumer-grade PCs and laptops since its inception in 2018. While DDR4 RAM remains available, DDR5 has rapidly become the preferred choice for those seeking enhanced performance. Initially, DDR5 RAM commanded a premium price point, with its market entry in mid-2021 marked by higher costs. However, the price landscape has since shifted, with DDR5 prices experiencing a downward trend.
However, market analysts are now projecting a reversal of this price decline. According to research firm TrendForce, DDR5 RAM prices are anticipated to witness a surge, potentially ranging from 15% to 20%. This marks a departure from the initial forecast, which projected a more modest increase of 3% to 8%. This predicted rise in prices is being attributed to a shift in manufacturing priorities, with memory producers redistributing resources towards the production of High Bandwidth Memory (HBM).
The demand for HBM has experienced a significant upswing, driven primarily by the burgeoning adoption of AI. Accelerators utilized in AI applications demand exceptional data speeds and efficiency, making HBM a highly sought-after component. This increased demand has prompted manufacturers such as Micron and SK Hynix to fully allocate their HBM supply for the entirety of 2024 and a substantial portion of 2025.
Simultaneously, HBM prices are also projected to increase by 5% to 10% in the coming year. This is due to the higher manufacturing costs associated with HBM compared to DDR5. Its superior performance and capacity advantages over standard DRAMs, coupled with the intricate nature of its construction, contribute to its elevated price point.
As memory makers focus their production capacities on HBM, the availability of other memory types, including DDR5, is expected to diminish. This dynamic is ultimately driving the upward trend in DDR5 prices. Consumers should anticipate the rising costs of DDR5 RAM in the coming months.
