The Rising Cost of RAM & SSDs: What’s Happening, Why It’s Happening AGAIN and What Comes Next
Over the past 18 months, the global memory and storage market has seen a dramatic shift. What was once a landscape of falling prices and abundant supply has changed: RAM (DRAM) and flash storage (SSDs/NAND) have surged in cost over the last few months — and prices are set to rise again. These repeated increases are affecting everyone from consumers and system builders to industrial and embedded buyers, making careful planning and procurement more important than ever.
Why Prices Are Rising…. AGAIN
Multiple market forces converge to create this new pricing environment:
- AI & Data-Center Demand Surge: Hyperscale data centres and artificial intelligence deployments are consuming unprecedented amounts of DRAM and NAND memory — often prioritised over mainstream consumer channels. This demand isn’t only for traditional server memory: HBM (High-Bandwidth Memory) for AI accelerators and large-capacity NAND used in enterprise SSDs are absorbing wafer capacity.
- Supply Reallocation & Production Cuts: Major manufacturers including Samsung, SK Hynix, Micron, and Kioxia have scaled back production of legacy DRAM and NAND lines to rebalance the market and focus on higher-margin products — but this has tightened available supply for general-purpose components.
- Legacy Node Phase-Out: Older memory process nodes — traditionally abundant and cost-effective — are being retired or repurposed for advanced memory types, further reducing the supply of cheaper DRAM and SSD NAND.
- Shift to High-Performance Platforms: The industry transition from DDR4 to DDR5 and older storage interfaces to NVMe PCIe 4/5 SSDs means more advanced chips are being produced, which are inherently more expensive to manufacture.
- Broader Market Conditions: Input material costs (e.g., silicon wafers, rare gases), geopolitical tensions, manufacturing slowdowns, and strategic capex prioritisation have all played a role in keeping capacity tight.
Price Trend Overview (Last 6–12 Months)
| Component | Trend | Key Drivers |
|---|---|---|
| DDR5 RAM modules | 📈 Continued price increases, new highs in late 2025 | AI demand; DRAM reallocation; tight supply cycles |
| DDR4 RAM modules | 📈 Prices stabilising at elevated levels | Legacy capacity shrinking; transition to DDR5 |
| NAND flash (SSD) | 📈 Sharp contract price increases | Strong enterprise and AI SSD demand |
| Industrial/embedded memory | 📈 Above average inflation | Long life cycles; tighter yields |
What’s Happened Over the Last 6 Months
Late 2025:
- Industry bodies reported that NAND flash contract prices climbed between 20% and 60%+ across segments.
- TrendForce and market analysts flagged sustained upward pressure on both DRAM and flash products.
Q1 2026:
- Major manufacturers reportedly doubled contract pricing on some NAND flashes as AI storage demand intensified.
- RAM prices — especially high-end DDR5 kits — kept climbing, with some modules more expensive than popular consoles.
- Apple publicly warned that memory costs are beginning to impact profit margins due to production prioritisation for AI memory types.
Forecast: What’s Likely to Happen
Industry analysts and insiders suggest the price environment may remain elevated through 2026 and beyond:
📌 Short-Term (Next 6 Months):
- Continued double-digit price increases in both DRAM and NAND flash contracts as AI growth keeps demand high.
- Spot and retail prices may lag contract trends, but are unlikely to drop until supply expands materially.
📌 Mid-Term (2026–2027):
- Memory manufacturers are investing in AI-oriented products (HBM4, high-layer NAND), which could maintain tight supply for mainstream components.
- A gradual easing might occur if new fabs come online or legacy supply boosts capacity, but analysts forecast a slower decline than in past cycles.
📌 Long-Term (2027–2028):
- Some softness could return as expanded capacity meets demand, but the memory market upcycle driven by AI investment is expected to last longer than previous cycles.
Example Price Comparisons (Illustrative)
Note: These are representative price changes based on market data signals and retail/spot trends over the last year.
RAM Price Changes (Commercial vs Industrial) – 16 GB DDR4 & DDR5 Modules
| RAM Type | Early 2025 | Late 2025 | % Change (Early → Late) | Expected Mid-2026 | % Change (Late → Mid-26) |
|---|---|---|---|---|---|
| DDR4-3200 16 GB (Commercial) | £50 | £90 | +80 % | £135 | +50 % |
| DDR4-3200 16 GB (Industrial) | £75 | £130 | +73 % | £190 | +46 % |
| DDR5-4800 16 GB (Commercial) | £80 | £190 | +138 % | £300 | +58 % |
| DDR5-4800 16 GB (Industrial) | £110 | £270 | +145 % | £430 | +59 % |
- DDR5 remains the fastest-rising memory, driven by sustained AI server demand and limited manufacturing capacity.
- Industrial RAM carries a higher base cost due to extended temperature ranges and long-term availability guarantees.
- Price increases are compounding, with late-2025 rises already baked in before the next expected uplift in early-to-mid 2026.
- DDR4 pricing is no longer stable, as manufacturers reduce production in favour of higher-margin DDR5 and HBM products.
- Short-term increases are being driven by contract pricing, meaning spot and distributor prices rise rapidly with little notice.
- Delaying procurement risks paying significantly more, particularly for industrial and embedded projects with fixed BOMs.
SSD Price Changes (Commercial vs Industrial) – SATA & NVMe SSDs
| SSD Type | Early 2025 | Late 2025 | % Change (Early → Late) | Expected Mid-2026 | % Change (Late → Mid-26) |
|---|---|---|---|---|---|
| 1 TB SATA SSD (Commercial) | £60 | £100 | +67 % | £145 | +45 % |
| 1 TB SATA SSD (Industrial) | £95 | £155 | +63 % | £225 | +45 % |
| 2 TB NVMe SSD (Commercial) | £120 | £220 | +83 % | £320 | +45 % |
| 2 TB NVMe SSD (Industrial) | £175 | £300 | +71 % | £430 | +43 % |
- NAND flash pricing is now firmly in an upcycle, following aggressive production cuts and strong enterprise storage demand.
- Industrial SSD pricing rises faster than consumer drives, reflecting endurance binning, firmware support, and long-term supply commitments.
- Capacity amplifies cost increases, with higher-capacity NVMe SSDs seeing larger absolute price jumps.
- Upcoming contract price increases are expected to feed through quickly to finished SSDs in the coming weeks.
- Industrial and embedded buyers face longer lead times, increasing both cost risk and project planning complexity.
- Forward ordering and stock reservation are becoming essential to manage cost exposure in 2026.
What This Means for Buyers
- Consumers & Gamers: Wait-and-see strategies may cost more later — upgrading now could avoid future spikes.
- System Builders & OEMs: Extended lead times and higher BOM costs heighten planning risk.
- Industrial/Embedded Projects: Early procurement and forward-contracting are now sensible risk mitigants given current volatility.
How BVM Can Help
At BVM Ltd, we specialise in sourcing industrial-grade memory and storage that meet demanding performance and lifecycle requirements — even in tight markets. If you’re planning a project that depends on reliable RAM or SSD supply, contact us to explore tailored part sourcing, forecast planning support, and supply chain risk management.
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- DDR5, LPDDR5, LPDDR5X Comparison: What Embedded and Industrial Buyers Need to Know
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