According to the latest report from TrendForce, there has been a severe hoarding phenomenon this week in the DRAM spot market. Buyers are scrambling to purchase, leading to a 30% surge in DDR5 chip spot prices within a single week. Major memory manufacturers have suspended DDR5 contract quotations. Original suppliers such as Samsung Electronics, SK Hynix, and Micron are all unwilling to provide clear contract prices, directly telling downstream customers there is “no stock to sell.” This buying frenzy is not only confined to the chip level, but has already spread to the consumer end. Merchants in Huaqiangbei, Shenzhen, revealed that the price of popular DDR4 16 GB memory sticks has risen from just over 200 yuan (approximately USD 27.78) at the end of September to between 350 yuan and 520 yuan (approximately USD 48.61–72.22), while DDR5 16 GB prices have reached around 600 yuan (approximately USD 83.33).
Market anomaly: DRAM frenziedly snapped up, procurement strategies transformed
The hoarding phenomenon in the DRAM spot market has drawn widespread attention in the industry. Buyers’ procurement strategies have undergone a fundamental shift, changing from the previous “compare three suppliers for the best price” to “buy immediately upon quote,” unhesitatingly accepting spot transactions at prices far above official levels.
Behind this abnormal behavior lies dual pressure: continued tight supply from vendors and shipment restrictions by major module manufacturers such as Kingston. Other module makers, in order to maintain normal production, have no choice but to bear high costs to replenish inventory.
The supply–demand imbalance in the market is becoming increasingly evident. Short-term supply problems remain unresolved, and purchasers are stockpiling in advance to ensure stable supply for the end of this year and even early next year.
This wave of hoarding is not limited to DRAM. The NAND flash market is showing a similar trend. Suppliers are maintaining high profits by controlling shipments and reducing supply, resulting in sparse market transactions while prices continue to climb.
Root cause of the phenomenon: three key factors driving the hoarding wave
The fundamental cause is capacity reallocation triggered by the AI boom. As the wave of artificial intelligence sweeps the globe, the three major memory manufacturers are allocating more capacity to HBM (High Bandwidth Memory), reducing capacity for traditional memory products.
HBM production consumes more than three times as many wafers as ordinary DRAM.
Original manufacturers such as Samsung and SK Hynix have significantly tilted capacity toward HBM and DDR5, severely squeezing the supply of traditional DDR4 and consumer-grade memory.
Supply chain sources indicate that Samsung Electronics took the lead in suspending October DDR5 DRAM contract quotations, prompting other memory manufacturers such as SK Hynix and Micron to follow suit. The suspension of quotations by original manufacturers has led to the spread of market panic.
Sustained growth in terminal demand is also an important factor. China Securities has pointed out that the three major memory manufacturers have suspended DDR5 quotations, DDR5 spot prices have surged by 25%, and quarterly price increases may reach 30%–50%. Faced with a clear upward price trend, buyers naturally choose to stockpile in advance.
From a technical architecture perspective, DRAM’s market position is irreplaceable. As the main memory of computers, DRAM (Dynamic Random Access Memory) is designed around “high bandwidth” and “scalability.”
Compared with LPDDR, which is designed for mobile devices, DRAM is purpose-built for high-performance computing. It adopts a multi-channel architecture paired with higher operating frequencies, enabling rapid processing of massive amounts of data—features that align precisely with the needs of AI servers and data centers.
Differences in physical form are also a key factor. DRAM uses a plug-in DIMM form factor, allowing users to upgrade capacity at any time as needed, whereas LPDDR typically adopts a “package integration” approach, being soldered directly onto the motherboard and not upgradeable.
The balance between performance and power consumption is equally important. DRAM’s “high performance” comes at the cost of “high power consumption,” which is not an issue in data centers with stable power supply. LPDDR, on the other hand, is built around energy saving, sacrificing sustained high-performance capability.
Industry impact: price increases from upstream to terminals
Rising memory prices have directly affected pricing strategies in the smartphone market. The standard version starting price of the Redmi K90 series flagship has increased by 300 yuan (approximately USD 41.67) compared to the previous generation. Other smartphone manufacturers have followed suit with price adjustments: the standard and Pro versions of the Realme GT8 have each seen starting prices rise by 300 yuan (approximately USD 41.67), and the starting price of the iQOO 15 has been set at 4,199 yuan (approximately USD 583.19), 200 yuan (approximately USD 27.78) higher than the previous generation.
iQOO Vice President Luo Feng has publicly stated that this round of memory price increases has directly affected the pricing strategy of the iQOO 15—not only impacting launch-period prices, but also influencing long-term product pricing strategies.
In the capital market, memory-chip concept stocks are performing strongly.
Outlook: supply–demand tensions likely to persist
Industry forecasts suggest that tight supply conditions in the DRAM market may persist for a long period. Chen Li-bai, Chairman of ADATA, the world’s second-largest memory module manufacturer, believes that the fourth quarter of 2025 will be “the starting point of a DRAM bull market,” and that a prosperous year for the industry can be expected next year.
SK Hynix CEO Kwak Noh-Jung has stated that he is “optimistic about next year’s memory semiconductor market.” Multiple well-known memory analysts also predict that both the DRAM and NAND Flash markets are currently experiencing shortages, and that prices in the industry are expected to rise further in the fourth quarter of this year and in 2026.
From a technological development perspective, the evolution from DDR5 to DDR6 will still take time. According to the DRAM development roadmap released by SK Hynix, DDR6 will not appear until 2029 or 2030. Before that, DDR5 will remain the mainstream and continue to evolve.
Looking across the global memory market, this super-cycle of price increases in memory driven by AI has only just begun. As the three major original manufacturers—Samsung, SK Hynix, and Micron—fully shift toward HBM and DDR5, the tight-supply situation for traditional DRAM products may intensify further in 2026.
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.