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AI Boom Sparks Massive Chip Price Surge
2 Feb
Summary
- DRAM contract prices expected to jump 90-95% in Q1 2026.
- Surge attributed to persistent artificial intelligence demand.
- Market researcher TrendForce raised previous price forecasts significantly.
Market researcher TrendForce has revised its outlook, now projecting a significant jump in DRAM contract prices. Conventional DRAM contract prices are expected to surge by 90% to 95% in the first quarter of 2026, compared to the final quarter of 2025.
This substantial price increase is primarily fueled by the persistent demand stemming from the artificial intelligence boom and data center operations. Previously, TrendForce had anticipated a more modest 55% to 60% growth for DRAM prices in the same period.
The heightened demand from AI and data centers is exacerbating the global imbalance in memory supply and demand. This imbalance is significantly strengthening suppliers' ability to dictate higher prices for their products.
