DRAM prices are expected to go down by the fourth quarter of 2021

For those of us who have tried to build our new PC this year, I know and understand the struggle. This has been a very difficult year for everyone trying to build a new PC and the blame goes to the shortage of components that is affecting certain high-end CPUs and especially the GPU market.

Well in these trying times, we will cling to any small ray of hope that is thrown our way, so here is a piece of good news that has come to the market. According to sources, the prices of memory modules are predicted to come down a bit, with supply expected to outpace demand in the fourth quarter of this year.

The information comes from market research folks at TrendForce, which explains that memory makers may hit peak production levels in the third quarter of this year. And since we have already stepped into the final three months of the year, the firm says there will be a surplus of DRAM, on top of suppliers already having a “healthy level of inventory” to begin with, resulting in a dip in price.

Analysts further explain that those parts that are currently in oversupply will see a decline that exceeds 5 percent sequentially and in terms of the whole DRAM then TredForce claims expects the average selling price to drop by around 3-8 percent in the fourth quarter.

“It should also be pointed out that, on average, the current spot prices of PC DRAM modules are far lower than their contract prices for 3Q21. TrendForce, therefore, expects an imminent 5-10 percent QoQ decline in PC DRAM contract prices for 4Q21, with potential for declines that are even greater than 10 percent for certain transactions, as PC OEMs anticipate further price drops in PC DRAM prices in the future.”

On the other hand, its also expected that the prices of Server DRAM’s will also go into a decline by up to 5 percent. Currently, vendors in North America and China are sitting on more than eight weeks of inventory in the server sector.

source