The rapid expansion of artificial intelligence is significantly impacting the global memory and storage market, resulting in soaring prices for consumers seeking essential components. Notably, the cost of DDR5 RAM, crucial for modern Intel and AMD systems, has recently hit new heights. A 64 GB kit of G.Skill’s Trident Z5 Neo 6000 MT/s RAM is currently priced at an eye-popping $599.99 on Newegg. This figure surpasses the cost of gaming consoles like the PS5 Slim and the Microsoft Xbox Series S, with the RAM kit being just $50 short of the latest PS5 Pro edition.
This steep price already reflects a 6% discount from its original $640, available due to a Black Friday promotion. To put these prices in perspective, earlier this year, a similar 64 GB Corsair Dominator Titanium kit was priced at just $349 during a review. In fact, deals during Prime Day offered the standard version of the same G.Skill kit for as low as $299, with comparable kits hitting even lower prices around $140.
Price tracking data reveals that the G.Skill Trident Z5 Neo kit maintained a price range between $205 and $220 until late October when it began its steep ascent. Since then, the cost has surged nearly 190%, with the kit escalating from $220 to $640 over just two months.
This surge coincided with the industry’s realization of the increasing demands placed by AI initiatives, which prompted manufacturers to prioritize production for AI clients, leaving traditional consumers grappling with inflated costs and limited availability. Experts predict that constraints on DRAM and NAND supplies may persist until 2026, as tech giants continue to chase advancements in artificial general intelligence (AGI).
Amid these price hikes, hard drives are disappearing from store shelves, with microSD cards now serving as viable alternatives. Large-capacity nearline HDDs are facing backorders of up to two years. This shortage has led to a spike in the sales of QLC SSDs, and many distributors are even bundling memory and motherboards to navigate the supply constraints.
The anticipated release of Valve’s Steam Machine is also expected to face higher-than-expected costs, due to its production timeline coinciding with this DRAM crisis. Historically, the memory market has experienced cycles of oversupply followed by undersupply, suggesting a potential return to more favorable DDR5 pricing by 2027.
Despite the current challenges, there’s a glimmer of hope for consumers; the dynamic nature of the market may allow for more competitive prices in the future. As the landscape adapts to these changes, staying aware of market trends and pricing dynamics can help consumers make informed purchasing decisions.