The memory market is experiencing a dramatic shift as DDR4 and DDR5 prices climb sharply heading into the final quarter of 2025. What’s driving this surge? A complex mix of supply chain constraints, shifting manufacturer priorities, U.S. tariffs, and the relentless rise of AI computing.
In a surprising twist, DDR4 memory—once considered legacy tech—is now trading at higher prices than its successor, DDR5. Spot prices for DDR4 16GB modules rose nearly 7% in August to $9.17, while DDR5 dropped 3% to $5.99. This inversion is not due to increased demand for DDR4, but rather a deliberate reduction in supply by major manufacturers like Samsung, SK Hynix, and Micron. [www.techspot.com]
DDR5 prices are also climbing, albeit at a slower pace. Contract prices are expected to rise by 10–15% in October, with spot prices jumping 15–25%. The demand is fueled by generative AI and cloud service providers, which are driving urgent orders for memory-intensive systems. [www.trendforce.com]
However, DDR5 production is still ramping up, and the transition from DDR4 is not yet complete. Many consumers and businesses are hesitant to upgrade due to the cost of new motherboards and CPUs required for DDR5 compatibility (HPE Gen11 and Gen12 servers).
The PCW team via its partnership with B2X Global still has ready stock available on the most common DDR4 HPE memory modules. Strong demand suggests that stock will move quickly especially as HPE makes a push to bolster sales before their fiscal year end on 10/31/2025.