Simon Chen, CEO of Adata, states that memory prices will rise sharply due to AI.
The global market for memory and storage can barely keep up with the demand from AI data centers. Manufacturers warn that the shortage of RAM, flash memory, and hard drives will persist for years, resulting in rising memory prices due to AI.
Shortage on all Fronts
According to Adata Chairman Simon Chen, this is the first time in his thirty-year career that all four major product lines (RAM, flash, SSDs, and HDDs) are simultaneously facing scarcity. Cloud giants like OpenAI, Amazon Web Services, and Microsoft are massively purchasing memory to train their AI models, leaving traditional PC and server markets to contend with residual stock.
DDR4 more Expensive than DDR5
The transition to DDR5 has caused an unprecedented price shock: the older DDR4 memory is now more expensive than its successor. Chen expects DDR4 contract prices to rise by another 20 to 30 percent by mid-2026, while DDR5 and hard drives will also become more expensive due to tight supplies.
SSDs could also increase in price by up to 30 percent. Despite attempts by Samsung and SK Hynix to increase their production by 30 percent, demand continues to outstrip supply. Chen predicts that the shortages will persist for at least four years, writes Techspot.