Key Takeaways
1. Prices for DRAM and SSDs have significantly increased due to major companies like OpenAI dominating the market.
2. The Samsung 990 Pro 1TB SSD has risen in price from $90 in October to $199 on Amazon.
3. Major manufacturers Samsung Electronics and SK Hynix plan to cut NAND flash production by 4.5% and 10.5%, respectively.
4. The shift in production focus is towards RAM for Nvidia’s Vera Rubin graphics chips, which are essential for AI data centers.
5. Price reductions for SSDs and RAM are unlikely until at least 2028 due to ongoing supply constraints and production shifts.
Since companies like OpenAI have taken a significant portion of the global DRAM market, prices for memory have greatly increased over the last few months. SSD prices have also been affected by this surge. For instance, the Samsung 990 Pro with 1TB of storage is now priced at $199 on Amazon, a notable rise from $90 in October, according to data from Camelcamelcamel.
Future Price Trends
This upward trend in prices might not stop soon, as reported by Chosun Biz. Both Samsung Electronics and SK Hynix are looking to cut their NAND flash production by 4.5% and 10.5%, respectively. To give you a clearer picture, these two firms make up over 60% of the global NAND output. With demand expected to increase while supply shrinks, we could see even sharper price increases.
Production Shifts
The reasoning behind this reduction in NAND manufacturing isn’t due to a lack of customers. Rather, it’s more lucrative for these companies to shift their fabs to produce RAM for Nvidia’s Vera Rubin graphics chips, which are crucial for AI data centers. Even though NAND prices may keep rising, both Samsung Electronics and SK Hynix believe that DRAM production will yield better profits in 2026 and 2027. It will take a while for competitors like China’s YMTC to fill the gap in supply, so don’t expect any price reductions in SSDs and RAM until at least 2028.
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