Faced with growing demand from data centers for artificial intelligence, the global memory market is experiencing an unprecedented situation. Memory prices are rising sharply, and this trend could last for several years. Find out why this increase is disrupting the industry.
3 key points to remember
- Memory prices, particularly for RAM and SSDs, are rising significantly due to demand from AI data centers.
- Large cloud companies, such as OpenAI and Amazon Web Services, are buying in bulk, creating shortages for traditional PC and server markets.
- The transition to DDR5 has reversed price trends, making DDR4 more expensive than its successor.
AI pressure on the memory market
The global memory and storage market is under pressure as demand from data centers for artificial intelligence exceeds available supply. According to Simon Chen, CEO of Adata, this situation is unprecedented in his thirty-year career. Major production lines, including RAM, flash memory, SSDs, and hard drives, are all facing simultaneous shortages.
Cloud giants such as OpenAI, Amazon Web Services, and Microsoft are buying memory on a massive scale to train their AI models. This increased demand is forcing traditional markets, such as PCs and servers, to make do with remaining stocks, putting further pressure on prices.
Impact of the transition to DDR5
The transition to DDR5 memory has caused an unprecedented price shock. DDR4, an older memory technology, has become more expensive than its successor. Simon Chen predicts that contract prices for DDR4 could rise by 20-30% by mid-2026. This increase affects not only DDR4 but also DDR5 and hard drives, due to persistently low inventory levels.
Increase in SSD prices
Prices for SSDs, a key component of computer storage, are also under pressure. Despite efforts by manufacturers such as Samsung and SK Hynix to increase production by 30%, demand continues to outstrip available supply. Prices could rise by up to 30% in the coming years, according to Simon Chen’s forecasts.
Context and industry response
Historically, Adata, founded in 2001, has established itself as a major player in the memory and storage solutions sector. The company has innovated to respond to technological developments and the changing needs of the global market. However, the current pressure exerted by the rise of AI represents a major challenge for the entire industry.