What to Know About the Current DRAM Market

The memory market is heating up again. DRAM prices are climbing fast due to AI demand, tighter supply, and the industry-wide shift from DDR4 to DDR5. For IT teams planning upgrades or expansions, understanding these changes is key to avoiding cost surprises.

 

What’s Happening in the Market

• Prices are rising sharply: DRAM costs are up as much as 40-45% in some segments this fall.
• What’s behind it:
  • AI data centers are consuming record amounts of server memory.
  • Manufacturers are reducing DDR4 production to focus on DDR5 and HBM.
  • Buyers are stocking up early to hedge against further increases.

 

DDR4: Still Common, but No Longer Cheap

DDR4 has been the data center workhorse for years as a reliable and cost-effective solution. But that’s changing.

• DDR4 supply is shrinking, and prices are up roughly 10-15% quarter over quarter.
• Some DDR4 modules now cost as much as DDR5, especially higher-capacity DIMMs.
• If you are supporting legacy platforms, plan ahead because DDR4 availability will tighten through 2026.

 

DDR5: The New Standard

DDR5 delivers the bandwidth and efficiency today’s workloads demand.

• Faster, denser, and more power-efficient than DDR4.
• Prices are also climbing (5-10% this quarter), but the gap between DDR4 and DDR5 is narrowing.
• New Intel and AMD platforms now require DDR5, making it the standard for next-gen servers.

 

V3’s Advantage: Strong Supply in a Tight Market

While the market faces supply pressure, V3 maintains a robust inventory position on both DDR4 and DDR5 server memory. Whether you’re extending legacy systems or building new DDR5-ready servers, our customers can avoid long lead times, unpredictable pricing, and availability risks.

 

What IT Buyers Should Do

1. Plan Purchases Early: DRAM prices are trending upward across the board.
2. Re-evaluate DDR4 vs. DDR5 Costs: The old price gap has nearly vanished.
3. Lock in Inventory: Utilize partners like V3 with strong supply and flexible terms.
4. Check Platform Compatibility: DDR4 and DDR5 are not interchangeable.

 

The Bottom Line

The DRAM market is in transition. DDR4 is no longer the cheap fallback, and DDR5 is the future. With prices rising and supply tightening, working with a partner like V3 ensures you get the performance, value, and timing your business needs to stay ahead.