Soaring DDR5 prices lead to falling motherboard sales and calls for gamers to boycott RAM

[imdarkbreeze]

The article said "falling motherboard sales". Not "falling RAM sales".

What is REALLY funny to me is that suddenly motherboard manufacturers, which had gotten unbelievably out of hand on prices for a while there, have suddenly decided that their products are only worth like 75% of the price they were worth just a few months back AND, more so, we can now also include incredibly expensive RAM kits with it, for free. That's cool, but you know what, both manufacturers? ST#U. Honestly.

 

[godrilla]

Intel and SoftBank collaborate on power-efficient HBM substitute for AI data centers, says report | Tom's Hardware https://share.google/txZW2uYAPSk5B6PAf
Another player for the ai datacenter semand for memory might be supplied by Intel calibration with sofbank by eta 2030.

 

[godrilla]

The only way the demand is going to shrink enough to affect supply is if either the AI bubble bursts, or the production is ramped up to meet supply.
Hobbyists aren't making much of a dent with demand considering how much more AI demands it lol

From what it looks like ram manufacturers aren't ramping up their supply production and are focused more on profits. Samsung seems to be making shorter contracts to steadily increase the price over time as well. If their is a bubble Inbound and dram manufacturers want to mitigate risk by not ramping up production. Seems like they are expecting a crash by 2028 by not ramping up supply and potentially seeing and oversupply of the the market demand. Seems like they know the ai bubble is real and want to ride the wave all the way to the bank!

 

[heliumfreak]

A RAM boycott? Who do these individuals think they are? 95% of RAM is being gobbled up by AI. They don't care about loosing the 5%. They'd probably happily loose it to sell it for more to AI.

 

[n3o127]

Mini & All‑in‑One PC Benchmarks - Ongoing reviews and benchmarks of mini PCs and all‑in‑ones would be fun to track. With prices running high, it’s worth seeing which models can actually game and how well they hold up. Support for frame generation could help bump some of these systems into “everyday playable PC” territory. Memory configurations matter: 16 / 24 / 48 / 64 GB RAM benchmarks would highlight the sweet spots. Most of these systems use SODIMM memory, which is trending upward in cost. Still, bargains may appear even as prices continue to rise over the next year.

Gaming PC Costs vs. Cloud Gaming - The high cost of gaming PCs may accelerate adoption of cloud gaming. A less powerful PC running Linux could still serve as a (price effective) gateway. With Amazon Prime, you already get Luna access for free. NVIDIA’s GeForce NOW looks increasingly appealing as entry costs for hardware climb. This shift could be an even bigger win for NVIDIA and cloud gaming services overall.

 

[toooooot]

Sucks for MB sales. Sucks for us all.

 

[trparky]

NVIDIA’s GeForce NOW looks increasingly appealing as entry costs for hardware climb. This shift could be an even bigger win for NVIDIA and cloud gaming services overall.

Unfortunately, I see that as the way forward if things remain being as stupid as they are.

 

[Jack77]

The only way forward and the only viable solution is for AMD and Intel to take the matter into their own hands and commit to producing affordable CPUs at scale, similar to the Xeon Max 9480(10nm, 2023), featuring 64+ GB of integrated L4 HBM cache directly on the chip.

The HBM2e memory on that CPU is bought from memory manufacturers just as well. Even more: HBM is what all these AI datacenters are after and DDR5 production capacity is being reduced so that more HBM can be produced. The reduced volume of DDR5 then has to be split between regular servers and the consumer space.

It just doesn't look good from any angle you look at it.

 

[Jack77]

Regarding soldering RAM: while usually it is a silly idea to cut costs and force people to buy a new system if the amount of memory becomes insufficient, sometimes it is necessary.
APU's benefit from high-speed (LP)DDR4/5X memory, and that memory just need short traces and clean signals to the memory controller. Putting the RAM chips on (SO)DIMMs is no option in that case.

And as others have already said: it's the memory chips itself that are scarce, regardless of how they are mounted.

 

[godrilla]

Wow prices are almost doubled from last week. That 64 gigs selling for $750 and 32 gig kits for $450.

 

[EvilRebar]

Reddit boycotts aren't worth the pixels they're wasting. It's just a lesson about how upvotes don't map to anything in the physical world - wallets included. Remember the Harry Potter game?

 

[Bamda]

2) RAM manufacturers will expand to make the excess profits while they can which helps on the supply side. This takes time but 6-12 months and we'll have significantly more RAM being made.

I read that RAM manufacturers are not planning to increase capacity because they want to maintain the profits they are generating now.

Memory makers have no plans to increase RAM production despite crushing memory shortages — 'modest' 2026 increase predicted as DRAM makers hedge their AI bets -Tomshardware.com

 

[godrilla]

I read that RAM manufacturers are not planning to increase capacity because they want to maintain the profits they are generating now.

Memory makers have no plans to increase RAM production despite crushing memory shortages — 'modest' 2026 increase predicted as DRAM makers hedge their AI bets -Tomshardware.com

I wonder if that is just something they are vocal about publicly and doing something else behind the seens. ( game of who blinks first). It would be a lost opportunity if they don't feed the pig while it's hungry. Or do they know the Something the public doesn't and the saturation point is near (thus they want to mitigate risk of oversupply and not ramp up production according to demand)

 

[ScottSoapbox]

That's true.

However, this is what I don't think you understand why all of this is going on. AI is, in fact, buying up all the DRAM that's being manufactured and the DRAM manufacturers are only too happy to provide. Why? Because it's practically guaranteed income whereas the consumer market isn't.

The same will go for the likes of AMD, Apple, and Intel if they choose to bundle DRAM with their own CPUs. Guaranteed income for DRAM manufactures.

This is all about economies of scale here. Why sell a few hundred thousand DRAM modules when you can sell millions?

Yes, I do understand the underlying cause. It's not that it is guaranteed income, it's a higher price they are willing to pay.

You are still fundamentally not understanding economies of scale vs negotiating power. My prior comment explains it pretty well. I teach these things for a living so I promise that I know what I'm talking about.

 

[ScottSoapbox]

I read that RAM manufacturers are not planning to increase capacity because they want to maintain the profits they are generating now.

Memory makers have no plans to increase RAM production despite crushing memory shortages — 'modest' 2026 increase predicted as DRAM makers hedge their AI bets -Tomshardware.com

Not expanding is more profit per RAM stick, but NOT more profit overall. That's the part people misunderstand. Companies want the most total money. If company A doesn't expand and company B does then B gets many more sales at somewhat lower prices while company A just gets lower prices. This is why competition is so important. It lets "greed" keep companies working in a way that helps customers.

I couldn't find the Tom's article, but my first question is what is "modest"? +10%? +30%? That is still expanding.

The second thing is that if true and not a rumor, it means they believe the excess demand is going to be short lived which means prices go back to normal when the excess demand ends.

 

[godrilla]

Not expanding is more profit per RAM stick, but NOT more profit overall. That's the part people misunderstand. Companies want the most total money. If company A doesn't expand and company B does then B gets many more sales at somewhat lower prices while company A just gets lower prices. This is why competition is so important. It lets "greed" keep companies working in a way that helps customers.

I couldn't find the Tom's article, but my first question is what is "modest"? +10%? +30%? That is still expanding.

The second thing is that if true and not a rumor, it means they believe the excess demand is going to be short lived which means prices go back to normal when the excess demand ends.

The only articles I found from Toms' is talking about Team group vendor' warning.
The RAM pricing crisis has only just started, Team Group GM warns — says problem will get worse in 2026 as DRAM and NAND prices double in one month | Tom's Hardware https://share.google/PrO4SY84i3MeMEPlE
PC gamer has an article talking about Samsung and SK Hynix focus on profits.

Memory crisis and sky-high DRAM prices could run past 2028 as Samsung and SK Hynix opt to 'minimize the risk of oversupply' | PC Gamer https://share.google/ovZll6PPhAUwhOXjX

 

[Rapob]

RAM/NAND prices exploding is a huge problem. It will affect everything from desktop pcs, laptops to consoles and hardware in general.

Lets hope Samsung and Hynix will meet fierce compeition form the smaller ones, now that they insist on keeping prices high.

 

[ChipBoundary]

RAM/NAND prices exploding is a huge problem. It will affect everything from desktop pcs, laptops to consoles and hardware in general.

Lets hope Samsung and Hynix will meet fierce compeition form the smaller ones, now that they insist on keeping prices high.

They're not doing this. Their capacity is sold out and then some. The companies that are doing this are the sellers. Why? Because they can't get more supply. There is literally no more RAM to be had, anywhere. It's called scarcity, basic economics.

A boycott will not work because RAM will continue to sell out. And contrary to what people believe, there is no "AI Bubble". It is still in its infancy and there will be no burst.

 

[Rapob]

They're not doing this. Their capacity is sold out and then some. The companies that are doing this are the sellers. Why? Because they can't get more supply. There is literally no more RAM to be had, anywhere. It's called scarcity, basic economics.

A boycott will not work because RAM will continue to sell out. And contrary to what people believe, there is no "AI Bubble". It is still in its infancy and there will be no burst.

Yes they are. They offcially said that they prefer higher prices, than upping production. Several news about this.

They are maxing profits, basic economy. Business 101. Taking advantage of the situation.

Samsung, SK Hynix and Micron account for 95% of dram production. There are other smaller brands, that could step up now.

AI bubble will burst for sure. Bigger than the dotcom bubble. Give it 1-2 years tops, even gains from now on, will be small. More like up and down. Ship has sailed. Nvidia will meet fierce competition in the coming years, demand will drop due to alternatives, and stock will dwindle, spreading shockwaves into all other tech companies which has been on a roll thanks to AI hype alone.

Every big investor and all the banks are predicting this, and already readied themself. Branching out of tech slowly but surely. Many big banks and holding companies sold Nvidia lately.

I earned big money on AI in the last 8-10 years. Don't get me wrong. But I am out now. Bubble is coming sooner than later. Biggest bubble in tech to ever exist. You will see. Lets talk in 1-2 years.

But sure, keep investing heavy in AI and you will get what I mean.

I bought Nvidia, AMD, Tesla and tons of other tech companies back in 2015-2016. Before the AI boom and I went "all in" and retired myself last year, so please don't talk AI hype to me. Train has left the station.

 

[godrilla]

Micron is leaving the consumer memory business via Crucial wtf?

 

[trparky]

Yeah... things aren't looking good for the PC enthusiast community.

 

[n3o127]

Micron is leaving the consumer memory business via Crucial wtf?

This has been on my mind and question of how many or the impact of brands taking a hard pass on consumer lines. Less choice, higher prices, little inventories. Driving consumers to cloud products, OEMs, and consoles.

 

[Watzupken]

There is no need to boycott. Given the unsustainable price of PCs and mobile device, it will definitely reduce demand. If end users don't have the necessary devices to run all these AI software, who will these big techs sell AI to? I don't really think paid for AI services are in high demand now. So big techs are just the ones trying to keep pumping air into the bubble to try to maintain the hype.