Updated
Updated · Tom's Hardware · Aug 7
RAM Prices Jump Back to 2007 Levels as AI-Driven HBM Demand Erases 20 Years of Declines
Updated
Updated · Tom's Hardware · Aug 7

RAM Prices Jump Back to 2007 Levels as AI-Driven HBM Demand Erases 20 Years of Declines

3 articles · Updated · Tom's Hardware · Aug 7

Summary

  • DDR5 memory now costs about $11.41 to $13.28 per GB, putting RAM back near 2008 nominal price levels and reversing roughly two decades of long-term declines within months.
  • AI-driven demand for high-bandwidth memory is the main force behind the surge: supply is still growing about 20% annually, but demand is rising closer to 200%, according to industry comments cited in the report.
  • The price spike is spreading beyond PCs, hitting graphics cards, smartphones, gaming consoles and automobiles, while even modules using Chinese CXMT chips have broadly tracked the big suppliers' higher pricing.
  • Apple CEO Tim Cook warned a day earlier that memory costs will be "even higher" this quarter, underscoring a broader industry view that current pricing is abnormally high and likely unsustainable without more supply or lower-memory AI designs.

Insights

If AI returns disappoint, can Micron's $100 billion in ironclad contracts truly protect it from the sector's notorious boom-and-bust cycle?
Will a massive influx of supply from emerging Chinese competitors disrupt the memory oligopoly before this AI super-cycle peaks?
Could breakthroughs in AI model compression bypass the looming memory wall and abruptly end the high-bandwidth memory shortage?