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DRAM Prices Are Expected to Enter a Downfall

SK Hynix 1anm DRAM
(Image credit: SK Hynix)

According to the latest report coming from a Taiwanese market intelligence firm, TrendForce, we have information that contract prices of PC DRAM are expected to decline resulting in anywhere from a 0-5% decrease in asking price for the fourth quarter of 2021.

A while back, we reported on TrendForce's prediction for the third quarter of 2021, which noted that the expected price increase is lower than originally forecasted. This news brought some relief to many consumers worldwide, as it meant that in the world of overpriced GPUs, DRAM would not get much more expensive.

According to today's data, estimations are that the contract prices of DRAM are going to enter a downfall of 0-5%, as "DRAM suppliers continued to lower prices in order to adjust their DRAM inventories", notes the report. This means that the inventories of DRAM are filled up to a point where memory suppliers have to lower their pricing to get rid of the stock.

"Regarding the contract market, PC OEMs currently carry relatively high levels of DRAM inventory because they substantially stocked up on PC DRAM beforehand in anticipation of an upcoming shortage," says the report, continuing that "Not only has PC OEMs’ high DRAM inventory put downward pressure on possible price hikes for PC DRAM, but the gradual lifting of COVID-related restrictions in Europe and the US will also likely lower the overall demand for notebook computers, thereby pulling down the overall demand for PC DRAM. TrendForce, therefore, forecasts a 0-5% QoQ decline in PC DRAM contract prices for 4Q21."

TrendForce PC DRAM Price QoQ Changes
Q1 2021Q2 2021Q3 2021Q4 2021
PC DRAM PriceUp ~5%Up 23-28%Up 3-8%Down 0-5%

Another interesting thing to note is that DRAM inventories have been populated with enough stock to last about 8 to 10 weeks during June, and now for the time period of Q4 2021, those inventories are expected to last up to 12 weeks, further showing signs of the declining prices. This is, of course, a positive sign for all consumers, especially those who are in need of an upgrade or are in the process of building a new PC.