The DRAM market is experiencing a significant price surge driven by robust demand from Cloud Service Providers and AI applications, coupled with tight supply. Both contract and spot prices are rising substantially. Manufacturers, facing depleted inventories, are actively increasing capital expenditure and negotiating long-term supply agreements, with double-digit price increases anticipated to continue.

Key Highlights

• DRAM prices surge, creating a seller's market, driven by robust CSP and AI demand coupled with tight supply across contract and spot markets.
• Manufacturers' last quarter DRAM revenue and profits surpassed expectations, primarily fueled by high-end products like HBM3e and server DDR5.
• Inventories are now critically low, significantly slowing current quarter shipments and leaving demand unmet; price increases are forecasted to persist into next year.
• HBM updates: both vendors submitted HBM4 samples. Conventional DRAM's rising profitability is now approaching HBM levels, impacting some vendors' HBM order strategies.
• Anticipating AI inference-driven server DDR5 growth, manufacturers plan increased capital expenditure and are negotiating multi-year long-term supply agreements.

Table of Contents

1. Market Update
2. TrendForce’s View
   • Samsung’s and SK hynix’s Respective DRAM Operating Profit Margins from 1Q24 to 3Q25

<Total Pages: 3>