Why RAM and SSD Prices Are Skyrocketing and What to Expect Next

💾 The Great Squeeze: Why RAM and SSD Prices Are Skyrocketing and What to Expect Next

The era of consistently cheap memory and storage is coming to a definitive end. After a period of oversupply drove prices for DRAM (used in RAM) and NAND flash (used in SSDs) to historic lows, the market has undergone a dramatic reversal.¹ Consumers and businesses are now facing steep, sometimes double-digit percentage price increases across all segments, a situation experts predict will persist for the foreseeable future.

The Perfect Storm: Causes of the Price Surge

The current memory and storage crisis is the result of a powerful convergence of two main factors: insatiable demand from the Artificial Intelligence (AI) sector and strategic supply constraints by major manufacturers.²

1. The Insatiable Demand of AI and Hyperscalers

The single biggest driver of the current price surge is the explosive growth in demand from AI, cloud computing, and hyperscale data centers.³

• Gobbling Up Supply: Large AI models and inference systems require astronomical amounts of high-performance memory and storage.⁴ Cloud Service Providers (CSPs) are purchasing enterprise-grade SSDs and high-speed DDR5/HBM (High Bandwidth Memory) at an unprecedented scale, effectively swallowing the world's available supply.⁵

• Prioritizing Premium Products: Memory manufacturers like Samsung and SK Hynix are heavily prioritizing the production of high-margin, specialized memory like HBM and server-grade DDR5 to meet AI demand.⁶ This strategic shift is drawing production capacity away from consumer-grade components (DDR4, standard DDR5, and client NAND flash).⁷

• Storage Hierarchy Shift: The demand for massive, high-speed datasets to train and run AI models is causing data centers to accelerate the adoption of SSDs to replace traditional Hard Disk Drives (HDDs).⁸ This secondary effect is putting even more pressure on the NAND flash market.

2. Strategic Supply Constraints and Manufacturing Shifts

On the supply side, manufacturers played a crucial role in setting the stage for the current crisis.

• Production Cuts: Following the market downturn and oversupply of 2022-2023, major DRAM and NAND manufacturers intentionally cut production volumes to stabilize prices and restore profitability.⁹

• Technology Shift Squeeze: As manufacturers shift capital investment and production lines to focus on the more profitable, cutting-edge technologies (HBM, advanced DDR5), the supply for older or lower-margin products like DDR4 RAM and smaller-capacity consumer SSDs is shrinking rapidly.¹⁰ This is causing some of the most dramatic price increases in the legacy segments as buyers are forced to compete for dwindling stock.

📈 The Expected Future and Duration of the Squeeze

Market analysis and manufacturer forecasts suggest that this pricing trend is not a temporary blip but a structural shift that will likely last for a significant period.¹¹

• Short-Term (Late 2025 - Early 2026): Analysts expect NAND and DRAM contract prices to continue rising, with some forecasts predicting 10-15% or higher increases per quarter in specific segments.¹² Consumer prices have already reacted, with dramatic spikes seen in retail channels for popular RAM kits.¹³

• Medium-Term (2026 - 2027): The supply shortages are not easily fixed.¹⁴ Building and equipping a new memory fabrication plant ("fab") takes years and tens of billions of dollars.¹⁵ Unless there is an unexpected cooling of AI demand, the tight supply and upward price pressure are projected to persist throughout 2026.¹⁶

• Long-Term Outlook: Some industry leaders have warned that the massive, sustained demand from AI could lead to a "pricing apocalypse" that could last up to a decade, as the foundational shift in how memory is allocated (prioritizing AI infrastructure over consumer products) fundamentally rewrites market economics.¹⁷

❗ Conclusion for Buyers: The consensus is clear: the window of cheap memory and storage is closed. Prices are expected to continue their upward trajectory with no clear reversal in sight for at least the next year. Consumers and businesses needing upgrades should consider purchasing sooner rather than waiting for a dip that may never materialize under the current market conditions.

🧑 For individuals, the strategy is about timing purchases and maximizing the value of current hardware.

1. The Proactive Purchasing Strategy

Given the current market trend, waiting is likely to cost you more.

• Buy RAM Now, Buy Big: If you are building a new PC or planning an upgrade (especially from 16GB to 32GB or 32GB to 64GB), purchase the RAM immediately. DDR4 prices have seen the most extreme spikes due to low supply, but DDR5 is also trending up. Over-provisioning slightly now acts as a cost hedge against future, more expensive upgrades.

• Target High-Capacity SSDs: While all SSD prices are rising, larger-capacity drives (4TB and 8TB) often still offer the best price-per-gigabyte when they go on sale. Monitor deals and sales closely, as the discounts on high-performance SSDs will disappear first.

• Prioritize Performance vs. Price: In this market, avoid paying a premium for marginal performance gains. A mid-range PCIe 4.0 SSD or a standard DDR5-6000 kit offers immense performance for most users, and seeking the absolute "best-in-class" will disproportionately impact your budget.

2. Maximizing Current Hardware

• Optimize Your RAM Usage: If you are constrained by 16GB of RAM, close unnecessary background applications and browser tabs to avoid hitting the memory limit, which forces the system to rely on slower virtual memory (your SSD).

• Utilize Cloud and External Storage: Instead of buying a new, massive internal SSD, offload cold storage (large game libraries, media archives, old documents) to cheaper external hard drives (HDDs) or cloud services. This frees up space on your fast, internal SSD for mission-critical applications.

• Focus on the Biggest Bottleneck: Before spending on RAM or an SSD, ensure your current CPU or GPU isn't the primary bottleneck in your system. In many cases, a storage or memory upgrade might not yield significant results if the processor or graphics card is already the performance limit.