Lexar manager predicts another 2x memory price increase

Lexar Regional Manager predicts a 2x RAM price rise before the end of this year

According to a report from Tom’s Hardware, Chris Xia, a Lexar Regional Manager for Australia and New Zealand, has predicted that DRAM/memory prices will double before the end of this year. Why? You guessed it, the AI datacenter buildout is continuing to eat the world’s memory supply, raising prices for everyone.

Recently, DDR5 memory pricing has stabilised at retailers, but Xia doesn’t expect this to last. He reportedly said that retailers are making an effort to shift their current inventory with discounts and bundles to make way for new stock, which is expected to cost much more.

High DRAM prices have caused mayhem across the consumer tech sector. It has become impossible for some companies to acquire enough DRAM. It has also forced many companies to implement huge price increases. These price increases have reduced their product sales, as many consumers are not willing to pay higher prices.

Currently, there are mixed opinions on the trajectory of DRAM/memory pricing. Those mixed opinions are based on whether or not people think today’s obscene demand for DRAM will last. In other words, will the rapid buildout of AI datacenters continue? Many are calling the AI market an investment bubble, and if it bursts, datacenter buildouts may stall. That could cause DRAM demand and pricing to plummet.

While many expect the AI bubble to pop, whether it happens anytime soon remains to be seen. Even if it pops, DRAM pricing will take time to drop. Many companies have long-term DRAM supply agreements with manufacturers, and that could force DRAM purchases at today’s high prices for some time.

Lexar’s Chris Xia, clearly believes that the AI gold rush is far from over. If demand continues to rise, there is no reason DRAM prices couldn’t rise further.

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