RAM prices double as AI companies stockpile memory chips

DDR4 and DDR5 RAM prices have skyrocketed in recent weeks, with some memory modules more than doubling in cost as manufacturers prioritize high-bandwidth memory production for AI data centers. The surge reflects a broader supply crunch affecting PC builders, as memory makers Samsung and SK Hynix shift capacity away from consumer RAM to meet exploding demand from AI companies stockpiling chips.

What you should know: Consumer RAM pricing has reached shocking levels, with dramatic price increases documented across major retailers.

• A Reddit user reported buying 32GB of DDR5 RAM for $104, only to see the same product jump to $220 shortly after.
• PCMag’s Michael Kan bought a two-pack of 16GB DDR4 RAM sticks for $51.99 in May; the same product now costs $114.99 on Amazon.
• PCPartPicker, a price-tracking website, shows DDR5 price increases began in September before accelerating significantly in October.

The big picture: AI demand is fundamentally reshaping the memory market as tech companies race to secure chips for data center expansion.

• Research firm TrendForce reports that AI infrastructure construction and data center buildouts have created a memory shortage.
• Tech companies are stockpiling DRAM while signing longer-term supply deals with manufacturers.
• Memory makers are “aggressively” shifting production capacity toward server-grade memory, constraining supplies for PC-focused DDR5 and DDR4.

Why manufacturers are prioritizing AI chips: Samsung and SK Hynix, the two largest memory producers, have redirected resources toward high-bandwidth memory (HBM) DRAM used in AI applications.

• According to Korea’s The Chosun Daily, “From a supply perspective, production capacity for general-purpose DRAM is inevitably shrinking.”
• Samsung and Micron reportedly stopped producing DDR4 RAM in June to focus on DDR5 and HBM production.
• This strategic shift prioritizes the more profitable AI market over traditional consumer applications.

What’s next: TrendForce forecasts continued price increases through the current quarter as supply constraints persist.

• “PC DRAM prices are forecast to continue edging upward through the quarter,” the research firm noted last month.
• While DRAM pricing has historically been cyclical, the AI boom risks creating a longer, more persistent shortage.
• Some PC builders are delaying purchases, hoping for potential Black Friday discounts next month.