# Memory Prices Surge as Supply Shortage Tightens

October 16, 2026 at 05:04 PM

> DRAM contract rates rose up to 24% this quarter as Micron warns of supply deficits persisting through 2028 amid production shifts.

Memory prices are surging as contract rates for DDR4 and DDR5 rose 24% and 20% respectively over the three months ending October 2026. October alone saw DDR4 prices climb 4% while DDR5 rose 3%. Spot market prices for DDR5 chips also jumped 8% this month.

Supply constraints are tightening as **Micron** phases out DDR4 production, though it will still supply automotive and industrial sectors. Micron CEO **Sanjay Mehrotra** warns demand will exceed supply through 2028, with 75% of 2027 production already allocated.

**Barclays** analysts expect the memory shortage to persist until 2029. With **Citi** predicting a 13.9% DRAM deficit by late 2027, hardware costs remain high; a 32GB DDR5 kit hit 489 Euros in October, while **Asus** is boosting DDR4 motherboard output to offset costs.


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