Current events in the DRAM supply chain are expected to drive up the prices of various products. Analysts at TrendForce highlight that the upward trend in memory prices will persist into the third quarter of this year, partly due to increased demand for servers. This increase in DRAM prices could significantly impact the cost of new generations of graphics cards, such as the NVIDIA GeForce RTX 50 series and the AMD Radeon RX 8000 series.
TrendForce analysts believe that “the recovery in demand for general-purpose servers, combined with an increased share of HBM production by DRAM suppliers, has prompted vendors to maintain their price-raising trend.” As a result, the average selling price (ASP) of DRAM in the third quarter is expected to rise by 8-13%. The largest price hikes are anticipated for server DDR5 (8-13%) and DDR4 (5-10%), while consumer DDR5 and DDR4 modules will see a smaller increase of 3-8%.
The demand for video memory currently remains stable but is expected to spike when graphics card manufacturers begin releasing next-generation GPUs. New GPU lines are now entering the testing phase, and manufacturers are gradually ramping up production of GDDR7, which is 20-30% more expensive than GDDR6. Prices for video memory are expected to rise an additional 3-8% in the third quarter.
“Since manufacturers are firmly entering a price-raising cycle, and the rate of increase is not slowing down, buyers are adopting a strategy of consistent stockpiling, making them more susceptible to the price increases proposed by sellers,” the TrendForce report states.
The rise in prices could affect the amount of video memory in new graphics cards. Recently, gamers criticized Nvidia for apparent cost-cutting on video memory, which gave AMD a competitive edge.
In summary, the rising cost of memory is poised to impact the graphics card market, potentially leading to higher prices for consumers. This trend could also influence the specifications of upcoming graphics cards, as manufacturers balance cost and performance to meet market demands.