Memory Prices Indefinitely High: SK Hynix Says Shortage Continues Through 2030 We haven't been complaining about RAM prices quite as much on the podcast
Honest question, why would the prices at this point ever go down again, even if the AI bubble pops?
Those companies are now used to these profits. For them, profits always have to increase year after year. If there’s no other choice of vendor (and I know this would open an opportunity for a new vendor to come and be cheaper, but if it were that easy with RAM it would have happened already), why would they even care to reduce it again?
Classic capitalist crises of over-production at the end of a business cycle will cause prices to crash and companies to fail and be subsequently gobbled up by the ones that survive.
The price is due to AI companies paying for the RAM at high prices. When the demand goes down the price should naturally come down, same thing happened with GPUs with crypto mining.
Don’t forget that Chinese companies also started making DDR5 RAM, if they can increase their output and keep up with demand, I believe the price will go down. Maybe in the future Chinese companies will dominate the RAM industry.
Honest question, why would the prices at this point ever go down again, even if the AI bubble pops?
Those companies are now used to these profits. For them, profits always have to increase year after year. If there’s no other choice of vendor (and I know this would open an opportunity for a new vendor to come and be cheaper, but if it were that easy with RAM it would have happened already), why would they even care to reduce it again?
If the AI bubble pops, there would be more supply than demand, driving the price down since storage is costly
It won’t pop though, since it’s singlehandedly driving the stock market. If too big to fail ever needed a poster child, this is it.
Classic capitalist crises of over-production at the end of a business cycle will cause prices to crash and companies to fail and be subsequently gobbled up by the ones that survive.
The price is due to AI companies paying for the RAM at high prices. When the demand goes down the price should naturally come down, same thing happened with GPUs with crypto mining.
Don’t forget that Chinese companies also started making DDR5 RAM, if they can increase their output and keep up with demand, I believe the price will go down. Maybe in the future Chinese companies will dominate the RAM industry.