DRAM Prices Expected to Rise Again as Memory Shortage Continues

DRAM prices are expected to rise again in the third quarter as strong demand from AI servers and data centers continues to put pressure on the memory supply chain. The latest estimates suggest that buyers will face higher costs across DDR, DRAM, and NAND products as suppliers struggle to match demand.

UBS expects DDR contract prices to increase by 32% sequentially in the third quarter, which is much higher than its earlier estimate of 17%. The bank also expects another 18% increase in the fourth quarter, with price changes likely to differ by brand and product type.

UBS also expects NAND prices to rise by 30% in the third quarter, compared to its earlier forecast of 17%. The bank believes the memory market will remain tight until the second quarter of 2028, mainly because demand growth continues to outpace supply growth.

TrendForce expects broader DRAM prices to rise by 18% sequentially in the third quarter, while NAND prices are expected to increase by 15%. However, the firm also noted that weaker consumer demand and already high base prices will limit how fast prices can rise.

Overall, the memory market remains under pressure as AI companies and hyperscalers secure long-term supply, leaving less room for normal buyers to absorb further price hikes.