Why is RAM So Expensive (and What It Means for You)

RAM prices have surged up to 619% in the past year. Learn why costs exploded, the role of AI, and how to plan your next PC upgrade smartly.

Why is RAM so Expensive?

If you’ve shopped for RAM recently, you’ve probably felt the shock: prices have gone through the roof. In fact, DDR5 modules have surged by 163% to 619% globally since late 2025, and even DDR4 kits are up by three times compared to mid-2024. What’s driving this unprecedented spike? Let’s break it down in plain language.

How Much Have Prices Increased?

• DDR5: Retail prices for 32GB kits jumped from around $150 to over $500 in many regions—a 200%+ increase. In Japan, some kits saw a 619% surge.

• DDR4: Prices tripled between June 2024 and December 2025. A kit that cost $100 now sells for $300+.

• Overall DRAM Market: Contract prices rose 171.8% year-over-year, outpacing even gold’s price growth.

  
  

Why Are RAM Prices Exploding?

1. AI Boom = Memory Hunger

   AI data centers are consuming massive amounts of RAM for large language models, inference, and training. Unlike regular apps, AI workloads need huge context windows and batch processing, which means more memory per server.

2. Supply Chain Squeeze

   • Only three companies (Samsung, SK Hynix, Micron) control 95% of DRAM production.

   • These manufacturers are prioritizing high-bandwidth memory (HBM) for AI accelerators because it’s more profitable, leaving less capacity for consumer DDR4/DDR5.

3. Production Cuts & Disasters

   • After oversupply in 2023, companies cut production by up to 50%.

   • A major earthquake in Taiwan in April 2024 disrupted fabs, adding to shortages.

4. Micron Exits Consumer Market

   Micron announced it will stop shipping Crucial-brand memory by February 2026, tightening supply further.

   
   

Impact on Consumers

• PC Builders: Expect higher costs or lower specs for the same budget.

• Laptops & Consoles: OEMs may raise prices or reduce RAM in base models.

• Smartphones: Analysts predict 20–30% price hikes by mid-2026 due to memory costs.

  
  

Will Prices Drop Soon?

Not likely. Experts warn shortages could last until 2027–2028, as building new fabs takes years. If you’re planning an upgrade, buy sooner rather than later.

What Can You Do?

• Buy Early: Prices are still climbing—waiting could cost you more.

• Consider DDR4: If your system supports it, DDR4 offers better value than DDR5 right now.

• Watch for Bundles: Some retailers offer discounts on RAM + motherboard combos.