Commodity memory prices set to double as fabs pivot to AI market

Memory prices could soon be double what they were earlier this year as chipmakers switch to advanced products to target the AI market, leaving a shortfall of more mature chips such as those meeting the LPDDR4 standard.

This is the warning from Counterpoint Research, which forecasts that memory prices are likely to rise 30 percent over current levels by the end of 2025, and possibly 20 percent further in the first half of 2026, due to critical chip shortages.

Coming on top of 50 percent increases already this year, this will mean a potential doubling of prices by mid-2026.

The research biz points to LPDDR4 supply tightness brought on by suppliers shifting production to more advanced chips for AI applications, which it says is distorting the market.

As an example, it claims that DDR5 for servers and PCs has been trading at around $1.50 per gigabit, while older DDR4 ...