DRAM Prices Climb as AI Siphons Supply; NAND Market Stabilizes

The latest data shows a divided memory market: DRAM prices are rising due to tight supply, while NAND flash prices have stabilized.

The primary cause of the DRAM shortage is the explosive demand for AI servers, which require high-performance HBM and consume significant production capacity.

This supply constraint is so severe that demand for the older DDR4 is spilling over to the even older DDR3, causing prices for legacy products to rise as well.

000660.KSMU.KS005930.KSWDC.KS

The memory chip market is currently telling two very different stories.

The main story is about DRAM, the memory used in PCs and servers, where a severe supply shortage is pushing prices up. This situation is largely driven by the explosive growth in artificial intelligence. AI servers require enormous amounts of a special, high-performance memory called HBM (High-Bandwidth Memory), which is putting a strain on the entire supply chain.

The causal chain here is straightforward. First, memory manufacturers are dedicating a significant portion of their production capacity to meet the insatiable demand for HBM. Second, this directly reduces the supply of conventional DRAM like DDR5 and DDR4, as they are all made in the same facilities. Third, as manufacturers shift focus to the newer and more profitable DDR5, they are scaling back or shutting down production lines for the older DDR4, further tightening its supply.

This has created a fascinating ripple effect. With DDR4 becoming scarce and expensive, some buyers are forced to turn to an even older generation, DDR3, for less demanding applications. This spillover demand is causing prices for legacy DDR3 to rise, a clear sign of a constrained market.

In stark contrast, the market for NAND flash memory, the type used in solid-state drives (SSDs), has stabilized. After experiencing sharp price hikes in late 2025, the market has found its balance. Supply is now better aligned with demand, leading to relatively steady prices with only minor weekly changes.

So, we have a bifurcated market: a hot DRAM market fueled by AI-driven scarcity that reaches even legacy products, and a cool, stable NAND market. This dynamic is expected to continue for the foreseeable future.

DRAM (Dynamic Random-Access Memory): The main memory used in most computers and servers to store data for active applications.
HBM (High-Bandwidth Memory): A specialized type of DRAM with very high performance, essential for AI accelerators and high-end graphics cards.
NAND Flash: A type of non-volatile storage memory used in SSDs, USB drives, and memory cards, which retains data even when power is turned off.