Fueled by expanding demand for artificial intelligence (AI) infrastructure, the average prices in August for DRAM and NAND flash again hit a record high. However, the pace of gains slowed from the previous month, to 4.2% for DRAM and 1.4% for NAND.
According to market research firm DRAMeXchange on the 1st, the average contract price in August for standard PC DRAM (DDR4 8Gb 1Gx8) was $25, up 4.2% from the previous month's $24. Compared with June 2016 ($2.90), when the survey began, it has risen more than eightfold.
The average price of DDR4 rose by double digits for 11 straight months from April last year through February this year, was flat in March, then again posted double-digit increases except for May (5%) before the pace of gains eased in August. TrendForce raised its forecast for quarter-over-quarter contract price increases for PC DRAM in the third quarter to 18–23% from 15–20%, noting that "most suppliers and PC original equipment manufacturers (OEMs) concluded third-quarter contract price talks by August," and explaining that "the magnitude of the increase has moderated from the second quarter's surge (45–50%)."
The August average contract price for standard NAND products for memory cards and USBs (128Gb 16Gx8 MLC) was $30.50, up 1.4% from $30.10 the previous month, extending a 20-month winning streak. The average selling price (ASP) increase for single-level cell (SLC) narrowed to 16–28% in August from 34–51% in July, and multi-level cell (MLC) rose only 1.4–1.5% from the previous month.
TrendForce said, "SLC prices are likely to keep rising after the third quarter, but the magnitude may continue to shrink," and projected that "MLC's uptrend will cool further as final margins are squeezed by cost pressures, sapping buyers' momentum for follow-up purchases."