RAM memory prices could drop at the end of the year due to excess inventory

According to the latest TrendForce report, DRAM chip supply is on track to outpace demand, which will cause a decrease in the price of these chips and therefore in the price of RAM memories. Compared to the current quarter, it is estimated that the price of these chips will fall between 3% and 8% during the next quarteras DRAM vendors have a large amount of inventory to sell, and their customers have already accumulated what is considered an unhealthy amount of inventory, resulting in lower demand and oversupply, driving prices down .

Report Distinguishes DRAM Demand By Specific Computing Segments (PCs, notebooks, servers, smartphones, etc.), and for example, the demand for PCs and notebooks that caused the pandemic has decreased. In the case of servers, the demand caused a large accumulation of inventory, and suppliers have stock for more than 10 weeks of shipments. This led DRAM chip customers to stop buying as many chips as before, and therefore DRAM chip manufacturers start to have excess inventory, which will force them to lower their prices if they want to sell them in the face of low demand.

These changes in DRAM prices would only be reflected during the fourth quarter of 2021, and it is unknown if this trend will continue next year. Everything will depend on the changes in the supply and demand relationship in the DRAM market.

Will this decrease in prices for RAM memory chips continue over the next year?

Source: Tom’s Hardware