Cheap Memory Has Run Out: Prices for DDR4 and DDR5 Doubled in Just a Couple of Months and Will Continue to Rise

The artificial intelligence boom, once confined to the server-grade market, is now significantly impacting consumer PC hardware. Over the last few months, RAM modules have seen their prices double, with SSDs and HDDs quickly following the same upward trend. According to suppliers, the market isn't expected to stabilize until at least the middle of next year.

Image source: Micron Technology
Image source: Micron Technology

The Soaring Cost of Memory

Team Group, a major supplier of SSDs and memory, highlights the dramatic price hikes. The core issue is twofold: major DRAM manufacturers are shifting production to DDR5 to meet AI demand, creating a shortage of DDR4. Simultaneously, tech giants are buying DDR5 in massive quantities for their multi-billion dollar AI infrastructure projects, driving up its cost.

  • A 32GB Corsair DDR5-6000 kit has nearly doubled in price to $184 since the start of the year.
  • A 32GB Corsair DDR4-3600 kit has surged by an even greater 115% to $161, almost erasing the price gap with the newer DDR5 standard.

Storage and Future Outlook

The price surge isn't limited to RAM. For the first time in decades, even traditional hard drives are facing shortages. Cloud providers are aggressively purchasing SSDs, inflating prices across both the server and consumer segments.

The balance of supply and demand in the memory market may not be reached until the middle of next year at the earliest.
Team Group Representatives

Analysts are even less optimistic, predicting that demand will continue to outstrip supply for the next three to four years. While manufacturers are ramping up production, they remain cautious after the market glut that followed the pandemic. This means high component prices are likely here to stay, and the trend could soon extend to other parts essential for building AI infrastructure.