DRAM Market Slowdown in Q4 2024: AI Servers Keep DemandAfloat
By [Your Name], Senior Journalist and Editor
The DRAM marketis experiencing a slowdown in price growth heading into the fourth quarter of 2024, with demand primarily driven by AI servers, according to a recent report fromTrendForce. While consumer demand for products like smartphones and PCs remains sluggish, AI server OEMs are continuing to purchase DRAM, providing a crucial lifeline for the market.
However, the report highlights a cautious outlook for the future. Smartphone brands are hesitant to commit to large-scale purchases, and the release of new PC models featuring Intel’s Lunar Lake processors has been delayed, leading to consumer uncertainty.
TrendForce predicts a significant reduction in the average price increase for memory in Q4. Despite this, the overall DRAM average price is expected to rise by 8-13% due to the increasing adoption of High Bandwidth Memory (HBM), which is used in high-performance computing applications like AI servers.
The report also delves into the dynamics of specific DRAM segments. The market for LPDDR4X, used in mobile devices, is facing oversupply due to increased production by Chinese manufacturer, Longsys. TrendForce anticipates a 5-10% decline in contract prices for LPDDR4X in Q4. Conversely, LPDDR5X prices are expected to remain stable compared to Q3.
The consumer market continues to show limited signs of improvement. With the year-end approaching, manufacturers are adopting a more conservative approach to inventory management.This, combined with declining demand, is creating a surplus in the market. As a result, DDR3 contract prices are projected to decrease by 0-5% in Q4, and DDR4 prices may also experience a decline.
Conclusion
The DRAM market is navigating a complex landscape in Q4 2024. While AI servers are providing a vital source of demand, the overall market is facing challenges from sluggish consumer spending and cautious inventory management. The increasing adoption of HBM is expected to drive overall DRAM price growth, but the outlook for specific segments like LPDDR4X remains uncertain due to oversupply.
Thecoming months will be crucial for the DRAM market as manufacturers and consumers alike grapple with the evolving landscape. The continued growth of AI and its reliance on high-performance memory will be a key factor to watch in the coming year.
References:
- TrendForce (2024). TrendForce:2024 年第四季度 DRAM 价格涨幅放缓，需求主要靠 AI 服务器维持. IT之家. Retrieved from [Link to IT之家 article]
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