AMD Warns DDR5 Prices Will Stay High Until 2028 Due to AI Demand

AMD has warned that DDR5 memory prices will remain elevated until 2028, citing sustained demand from the AI sector that is diverting manufacturing capacity away from consumer memory. The report, sourced from 4Gamers, indicates that the current supply crunch for DDR5 modules is unlikely to ease for approximately two more years. This forecast comes as AI workloads, particularly in data centers and high-performance computing, continue to consume a growing share of DRAM production. The imbalance between AI-driven demand and consumer supply has led to persistent price inflation for DDR5, affecting PC builders and gamers. AMD's statement underscores the structural shift in memory allocation, where enterprise and AI applications now take priority over consumer electronics. The company did not provide specific pricing forecasts but emphasized that normalcy in the consumer DDR5 market is not expected before 2028.

Global Impact

Economic: The sustained high DDR5 prices will increase costs for PC manufacturers and consumers, potentially dampening demand for consumer electronics and slowing the replacement cycle for personal computers. This could weigh on GDP growth in tech-heavy economies like Taiwan and South Korea, where memory exports are significant.