DDR5 Memory Prices Likely to Stay High Until 2028, AMD Executive Warns

Why DDR5 Prices Remain Elevated

An AMD senior executive told analysts on Tuesday that DDR5 RAM prices will not return to pre‑2024 levels before 2028. The warning comes amid growing concerns that the prolonged price surge could ripple through the laptop market, especially as rivals such as Lenovo are rumored to be preparing their own price adjustments.

The executive cited lingering supply bottlenecks, high production costs, and a surge in demand from data‑center operators and gaming enthusiasts as the main drivers of the price stickiness. Industry analysts say the situation is compounded by limited wafer capacity and the slow ramp‑up of new manufacturing lines, which together keep inventory tight and prices elevated.

Manufacturers have struggled to scale DDR5 output since its introduction in 2022. The newer standard requires more advanced lithography and tighter quality controls, which translates into higher per‑chip expenses. „Even as we add capacity, the cost curve stays steep,” the AMD executive explained. He added that the memory market is still recovering from the 2023 chip shortage, which forced many foundries to prioritize high‑margin products over volume.

Will Laptop Prices Spike as a Result?

Demand has not eased either. Cloud providers are migrating legacy workloads to DDR5‑equipped servers to meet performance targets, while gamers upgrade to the latest consoles that rely on the faster memory. This dual‑front pressure keeps orders flowing, leaving little room for price reductions. Market data shows DDR5 module prices hovering around $150 per 16 GB stick, roughly double the cost of DDR4 equivalents a year ago.

If DDR5 remains pricey, laptop manufacturers may pass the cost onto consumers. Rumors suggest Lenovo could raise the price of its flagship ThinkPad line by up to 10 % later this year. „We cannot absorb the entire memory premium without hurting margins,” a Lenovo spokesperson said when asked about the speculation. Smaller brands, which already operate on thin profit margins, could be forced to either cut features or delay the rollout of DDR5‑based models.

Consumers looking to upgrade now may face a narrow window before the next wave of price hikes. Some analysts advise buying a laptop with DDR4 now and waiting for DDR5 models to become affordable, while others argue that the performance gains of DDR5 justify the extra cost. The uncertainty makes budgeting for new hardware more challenging for both individuals and enterprises.

The prolonged high price of DDR5 could slow the adoption of next‑generation PCs, potentially delaying the benefits of faster memory for the broader market. However, AMD remains optimistic that continued investment in memory technology will eventually bring costs down, even if the timeline stretches into the late 2020s. In the meantime, buyers should monitor announcements from major OEMs and consider their performance needs before committing to a purchase.

Frequently Asked Questions

When is DDR5 expected to become cheaper? Industry insiders project that meaningful price reductions may not appear until 2028, when newer memory generations start to dominate production lines.

Will the DDR5 price issue affect other components? Higher memory costs can pressure overall system pricing, leading manufacturers to adjust CPU, storage, or battery specifications to maintain profit margins.

Should I buy a laptop now or wait? If you need the latest performance now, purchasing a DDR5‑enabled laptop may be worthwhile despite the premium. Otherwise, waiting for price stabilization could save money in the long run.