Driven by demand for artificial intelligence (AI) infrastructure, a forecast says memory prices will rise by as much as 50% this year as the memory semiconductor market booms, following last year's surge.
According to market research firm Counterpoint Research on the 7th, memory prices, which jumped 40%–50% in the fourth quarter of last year, are expected to rise an additional 40%–50% in the first quarter and 20% in the second quarter this year.
Counterpoint Research said, "The memory market has entered a 'hyper-bull' (Hyper-Bull, super-strong) phase, surpassing the previous peak in 2018," and noted, "Buoyed by unending demand for AI and server capacity, suppliers' bargaining power has reached an all-time high."
Counterpoint Research projected that the supply shortage will be difficult to resolve for the time being. Counterpoint Research said, "As major players such as Samsung Electronics and SK hynix shift production to high-margin server DDR5, the supply of legacy technologies (products) is shrinking rapidly," and explained, "Although DRAM output is set to increase 24% from a year earlier this year and capital expenditures (capex) are also expanding, it will take time to meet actual demand."