Server DRAM contract prices continue to rise due to supply deficits and depleted manufacturer inventories. Although premium pricing on high-capacity modules and shifts in processor configurations have led cloud service providers to recalibrate their demand toward low-to-mid capacity options—temporarily halting the growth momentum of large-capacity shipments in the second half—overall server demand remains robust, keeping the market under-supplied.

Key Highlights

• Seller-Dominated Price Hikes: Contract prices continue to escalate as major manufacturers leverage low inventory levels and ongoing supply deficits among cloud service providers and OEMs to maintain strong bargaining power.
• Dynamic Capacity Allocation: While smartphone demand weakens and next-generation high-bandwidth memory encounters technical bottlenecks, manufacturers have successfully diverted capacity to server modules, reinforcing the server market's stabilizing role.
• Shift to Low-to-Mid Capacities: Cloud service providers are aggressively reducing high-capacity orders in favor of lower capacities. This shift is driven by reduced memory allocation per core in specific AI applications, custom silicon constraints, cost pressures from high-capacity premiums, and the utilization of alternative modules amid tight supply.
• Pause in Capacity Growth: Influenced by revised procurement strategies, the previously surging shipment shares of high-capacity modules and related advanced dies are projected to plateau rather than advance in the year's second half.

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