DRAM prices are anticipated to fall significantly in early 2025

According to Trendforce, a notable decrease in DRAM pricing is projected for early 2025, attributed to weak consumer demand resulting in higher inventory levels. The principles of supply and demand are now influencing the deflation of memory prices.

DDR4 DRAM is expected to experience the most substantial price reductions in the first quarter of 2025, with prices anticipated to drop by 10-15% in both server and PC DRAM markets. This situation stems from an oversupply of memory due to sluggish sales and increased production of DDR4 memory by Chinese manufacturers.

The pricing for VRAM is also expected to decline, with GDDR6 memory predicted to drop by 8-13%. For GDDR7, a more modest decrease of 0-5% is anticipated, which is reasonable considering its recent introduction. This development is noteworthy, considering rumors suggest that Nvidia's upcoming GPUs will utilize GDDR7 memory, while AMD's new RDNA 4 GPUs are said to use GDDR6. Could the reduced pricing of GDDR6 enable AMD to adopt a more competitive pricing strategy for RDNA 4?

In summary, these trends are positive for consumers, as falling memory prices may lead to lower product costs in the future. However, DRAM manufacturers are likely taking steps to rectify the supply-demand mismatch. Production capacity for DDR4 is shifting towards DDR5. Additionally, a significant portion of memory production is transitioning towards HBM memory, which continues to see high demand.

If demand does not rise, it is expected that DRAM pricing will keep decreasing. Until then, while waiting for more exciting news, remember to use our comparison tool to find the best deal for your next favorite game.