Manufacturers of NAND and DRAM chips seem to be moving from one extreme to another. Last year, manufacturers and their business partners were troubled by excess inventory. Due to the rise of artificial intelligence, they appear to be struggling to keep up with the growing demand.
Since last year, the prices of memory and solid-state drives (SSDs) have been rising, and this trend is indeed evident. By comparing the price trends of several 500GB SSDs on the market, it is found that each model is now more expensive than a few months ago.
Some consumer-grade SSDs, like the Crucial MX500, have only increased by $5, but other SSDs, including the Samsung 970 Evo Plus, have risen by as much as $15.
Dell’s Chief Operating Officer, Jeff Clarke, stated during the company’s Q1 2025 earnings call that they expect all forms of costs, including freight and components, to rise.
Clarke explained, “The lack of capital expenditure, low factory utilization, and limited wafer starts will all lead to a supply that is less than market demand.” Dell believes that most market demand will revolve around powerful AI servers, which will require high-bandwidth memory and fast internal and external storage.
Dell indicated that the cost of SSDs and memory will increase by another 15% to 20% in the second half of this year, and Dell will adjust its prices accordingly.
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