Bank of America: Average DRAM Price in Q3 May Increase by 21% QoQ, Exceeding TrendForce's Forecast

BlockBeats News, July 19th, according to Bank of America Global Research's "Global Memory Tech" report, a channel check found that the third quarter's newly agreed DRAM contract prices rose more than the market had expected. Server DRAM prices increased by 20% to 30% QoQ, mainly driven by high-speed LPDDR5, exceeding the market's original expectation of no more than 20%.

Spot demand also remained strong, with prices of commodity DDR5 and traditional DDR4 continuing to rise in July. Recent orders for high-priced HBM4 have also increased, while the share of orders for lower-priced HBM3E has decreased.

The report stated that the sales share of DRAM covered by long-term supply agreements is significantly lower than 50%, with non-long-term agreement sales accounting for about 60% to 70%; even under long-term agreements, some orders have already been confirmed to increase by 5% to 10% QoQ. Some OEM manufacturers are speeding up their orders, indicating that both DRAM and NAND prices may increase by more than 20% QoQ.

Bank of America expects that the global average selling price of DRAM will increase by 21% QoQ in the third quarter, higher than TrendForce's forecast of a 13% to 18% increase for traditional DRAM and an 8% to 13% increase when including HBM.