AI Is Eating All the DRAM. DDR5 Prices Just Doubled. GPUs Could Be Next.

This AI boom needs to bust. Not only are companies warehousing product because they can't build data centers fast enough, many data centers that are already built can't get enough power to actually turn on.

These companies are using massive amounts of debt to buy whatever is available without any idea of how they're going to use it. It would be one thing if we couldn't fill data centers fast enough and there was a shortage. The fact of the matter is there is hundreds of billions of dollars of product just sitting places and not being used. Meanwhile, we keep hearing about how there are shortages.

This is nonsense. I really can't wait for this bubble to pop and all these companies get knocked down a few pegs.
 
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Puiu said:
So I guess I'm lucky for pulling the trigger last month. I didn't want to get too close to black friday because of the huge delivery delays (and obviously fake discounts).
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Good forward thinking. I am also glad I managed to get a GPU at below-normal prices (so just the MSRP, yuck) a few days ago.

Same with SSDs, if anyone wants a SSD, better get one before Thanksgiving. Raw NAND contract prices have doubled since July of this year, and the shortage is going to persist all the way to late 2027.
 
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They're all doing the same thing, jack up the prices, because they know this ship is sinking. Datacenters cant be built fast enough and there isnt enough juice either. Warehouses are full of this AI garbage.

They know a crash is coming, and they're trying to print a mint before it all falls apart.
 
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Theinsanegamer said:
They're all doing the same thing, jack up the prices, because they know this ship is sinking. Datacenters cant be built fast enough and there isnt enough juice either. Warehouses are full of this AI garbage.

They know a crash is coming, and they're trying to print a mint before it all falls apart.
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Kinda smart if you ask me. Easy money! :)
 
Theinsanegamer said:
They're all doing the same thing, jack up the prices, because they know this ship is sinking. Datacenters cant be built fast enough and there isnt enough juice either. Warehouses are full of this AI garbage.

They know a crash is coming, and they're trying to print a mint before it all falls apart.
Click to expand...
The ai big players are circulating hundreds of billions of dollars amongst themselves. Would not be surprised if they are stockpiling hardware.
 
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So what I am hearing now is, hope and pray for the crash as I was not as fortunate as @Puiu. I am not in an immediate rush to build my next computer but I have started collecting parts... memory was going to be next but now I'll wait and see.
 
godrilla said:
The ai big players are circulating hundreds of billions of dollars amongst themselves. Would not be surprised if they are stockpiling hardware.
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But why? It'll all be outdated in a year or 2. I can't wait for the great liquidation. Pick up terabytes of memory and boatloads of GPUs for pennies on the dollar
 
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yRaz said:
But why? It'll all be outdated in a year or 2. I can't wait for the great liquidation. Pick up terabytes of memory and boatloads of GPUs for pennies on the dollar
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Too many nefarious players focused on short term gains and overlook on being last to hold the bag. Who remembers Black Friday 2023 Samsung Pro 2 terabytes were selling for 100$ a pop and microcenter gave out free 32 gig GDDR5 kits 6 ghz cl30s for free with a new Ryzen cpu. 😔
 
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Oh no. This will hurt so much those RAM upgrades on Apple models.
Like 200USD for 8Gb of upgrade. Will Apple be able to survive? I am so worried about them now
 
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yRaz said:
This AI boom needs to bust. Not only are companies warehousing product because they can't build data centers fast enough, many data centers that are already built can't get enough power to actually turn on.
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That's some good old speculation right there.

You are mistaking Microsoft situation for the entire industry.

If MS, Meta, Amazon, OpenAI, Antrhopics, Google, X, Tesla or anyone else want power allocation, there is a country named Canada with plenty of green power (Quebec) and cold weather. Basically, they are going to find a solution. This situation is far from being a problem at the moment. There is other countries in the world.

Not to mention, these companies are now planning to generate their own power.
 
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Theinsanegamer said:
They're all doing the same thing, jack up the prices, because they know this ship is sinking. Datacenters cant be built fast enough and there isnt enough juice either. Warehouses are full of this AI garbage.

They know a crash is coming, and they're trying to print a mint before it all falls apart.
Click to expand...
If a crash is coming, then why the demand is still there?

People tend to forget that people like Michael Burry are SHORTERS trying to manipulate the market because they have bets in place.

The reality is, there is going to be a correction when the investors decide there will be one, and right now, I don't see it. The only reason why it is moving for the last two weeks is because shorters are vocals and are manipulating the markets so they can make money day by day.

They make the stocks drop 4 to 5% by selling their shares that they buy back the next day. to make 4 to 5%.

If you are asking what you should be worried about, it is this.
 
I think GPU prices will be affected by more than ram cost - It will be impacted by ram shortage.

Which means - less gpu's gets made - the cost will increase, supply and demand.
 
redgarl said:
If a crash is coming, then why the demand is still there?

People tend to forget that people like Michael Burry are SHORTERS trying to manipulate the market because they have bets in place.

The reality is, there is going to be a correction when the investors decide there will be one, and right now, I don't see it. The only reason why it is moving for the last two weeks is because shorters are vocals and are manipulating the markets so they can make money day by day.

They make the stocks drop 4 to 5% by selling their shares that they buy back the next day. to make 4 to 5%.

If you are asking what you should be worried about, it is this.
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Most crashes stay on the gas until they fail. Demand being strong =! a healthy market.

You seem to really hate Burry, and let that blind you to the market.

Corrections happen when markets cannot keep up. Investors are going to get obliterated (good) when their greed backfires and nobody wants their $10 trillion google search wannabe.
 
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If this is true shouldn't smartphone prices be going up as well?

Sounds like BS and it's just greed again taking the piss of customers that don't have patience to wait it out.
 
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