According to AMD Vice President and General Manager David McAfee, the normalization of next-generation memory prices is expected only in about two years.
He shared this in an interview with 4Gamers. According to the top manager's assessment, the shortage and high prices for DDR5 will persist throughout 2026 and 2027, and the market will return to more familiar levels no earlier than 2028.
McAfee named the rapid development of the artificial intelligence industry as the main reason for the sharp increase in memory costs. The increased demand for modern memory chips has forced major manufacturers to actively expand production capacities and increase DDR5 output.
The mass transition of the industry from DDR4 to DDR5 also had an additional impact. Manufacturers are gradually reducing the production of previous generation modules, prioritizing the more in-demand DDR5. As a result, DDR4 production volumes have been declining for several years in a row.
Despite investments in factory expansion, the market situation remains tense. According to the source, in some regions, the cost of DDR5 has reached record levels and can exceed previous levels by 4–5 times.
AMD's forecast confirms earlier reports from analysts that the shortage of DDR5 memory in the mass segment will persist at least until the end of 2027, and significant relief for buyers is not expected in the near future.