An analysis said the price gap between fifth-generation high-bandwidth memory (HBM) HBM3E and server DDR5 will narrow significantly over the next year. The shift stems from reduced supply of commodity DRAM as demand for artificial intelligence (AI) infrastructure expands.
According to market research firm TrendForce on the 18th, the price gap between HBM3E and server DDR5, previously four to five times, is expected to shrink to one to two times by the end of 2026. TrendForce said, "In the fourth quarter of this year, contract prices for server DDR5 far exceeded market expectations," and noted, "This is improving wafer revenue and narrowing the price gap with HBM3E."
While upward revisions to demand forecasts for graphics processing units (GPUs) and application-specific integrated circuits (ASICs) are also benefiting HBM3E prices, the overall supply shortage in the memory market is pushing DRAM prices up even more.
The average selling price (ASP) of HBM3E in 2026 is expected to rise slightly. TrendForce said, "As the revenue of commodity DRAM improves, some suppliers are shifting capacity to DDR5, and major customers are increasing HBM3E purchases to build AI systems next year," and analyzed, "This is a factor expanding the room for HBM3E price increases."