DRAM pricing set to decrease in early 2025
DRAM price reductions are set to hit the PC, server, mobile and GPU memory markets
DRAM pricing is set to drop significantly in early 2025, with Trendforce predicting drops in memory prices for almost all markets. This drop in pricing is due to weak consumer demand, which has led to increased inventory levels. Now, the rules of supply and demand are in effect, deflating memory pricing.
DDR4 DRAM is set to see the largest price cuts in Q1 2025. Pricing is expected to drop 10-15% in both the server and PC DRAM markets. This is due to an oversupply of memory, which has been caused by weakened sales and the increased DDR4 memory production by Chinese suppliers.
VRAM pricing is also due to decrease, with a drop of 8-13% expected for GDDR6 memory. For GDDR7, a smaller drop of 0-5% is expected, which makes sense given how new GDDR7 memory is. This is an interesting development, as Nvidia’s next-generation GPUs are rumoured to use GDDR7 memory. AMD’s new RDNA 4 GPUs reportedly use GDDR6. Will lowered GDDR6 pricing allow AMD to be more aggressive with their GPU pricing with RDNA 4?
Overall, these developments are good news for consumers, as lowered memory prices may result in lower product prices in the future. However, we can be sure that DRAM manufacturers are doing what they can to address the imbalance between supply and demand. DDR4 manufacturing capacity is moving to DDR5. Furthermore, a lot of memory manufacturing is moving towards HBM memory, which remains in high demand.
Unless demand increases, DRAM pricing is expected to continue lowering.
You can join the discussion on the downward trend of DRAM prices on the OC3D Forums.