AMD Warns DDR5 Prices Won't Return To Normal Until 2028, As AI Boom Strangles Consumer Memory Supply
Key Points:
- AMD's VP David McAfee predicts DDR5 memory prices will remain significantly high for the next two years, with normalization expected around 2028.
- The surge in DDR5 prices is attributed to the AI boom, driving high demand and prompting major memory manufacturers to expand production facilities.
- Manufacturers have shifted focus from DDR4 to DDR5 production, causing a decline in DDR4 capacity despite increased demand for DDR4 modules at elevated prices.
- Due to the high cost of DDR5, many users continue to rely on DDR4 platforms, leading to increased production of DDR4-compatible motherboards and sustained demand for older processors like AMD's Ryzen 7 5800X3D.
- The DDR5 shortage and high pricing are expected to persist through 2026 and 2027, with DDR5 modules currently selling at 4-5 times higher prices in many regions.