DRAM Industry Anticipates Economic Revival, AI Could Be The Savior

The DRAM industry is grappling with serious problems due to a sharp decrease in memory prices, triggered by dwindling demand and a lack of customer interest. However, a recent slowdown in this price drop has been noticed.

Industry leaders such as Samsung and Micron have reduced their production faster than in previous quarters to address the oversupply situation the sector has been witnessing for several quarters. While such an approach could lead to a scarcity of memory products, raising prices and bringing short-term benefits to companies, it could pose problems for consumers, especially when buying high-configuration memory.

However, oversupply is not limited to current-gen products. DDR4 memory prices are expected to drop by 3-8% in the coming quarters as manufacturers aim to clear high inventory levels. The statistics for Graphics DRAM show that it is also susceptible to the industry's price decline. However, with the release of the new GeForce RTX 40 series, demand for 16 GB GDDR6 memory is increasing, but the price drop is still expected to be at 0-5% for Q3.

Despite the dire situation in the DRAM market, it has been noted that companies like SK Hynix have witnessed a significant increase in demand, mainly due to the recent AI boom. This factor might prove to be a saving grace for the DRAM industry in the near future.