AMD Warns DDR5 Prices Won't Return To Normal Until 2028, As AI Boom Strangles Consumer Memory Supply

AMD Warns DDR5 Prices Won't Return To Normal Until 2028, As AI Boom Strangles Consumer Memory Supply

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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.

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