Memory Prices May Have an Exit Date After All

The memory industry could be looking at an inflection point sooner than many have predicted. Jason Chen, CEO of Acer, expects PC parts to drop in price by mid-2027, which is quite different from the gloomy predictions made by some memory producers.

The Memory Crunch Could Peak Before It Eases

Chen anticipates an additional increase in PC prices ranging from 5% to 20% by 2026. He predicts that there will be a market stabilization period for the first half of 2027, after which there will be a slow drop.

As things stand now, the most affected are high-speed DDR5 memory, LPDDR5X-9600 memory, and some specialized processors. The general shortage of memory and SSDs, he claims, may not be as dire as the industry is claiming.

His forecast clashes with predictions from major memory suppliers. SK hynix has warned that 2027 could bring particularly difficult supply conditions, with prices potentially taking until 2030 to normalize. Adata has previously suggested that DRAM shortages could last even longer.

China Could Change the Price Equation

Increasing production in China is another potential cause mentioned by Chen. In China, companies are increasing the production of low-priced memory chips, which would increase competition and lower prices.

Acer itself employs memory chips produced by the Chinese company CXMT. Chinese chips have also been used by other major PC manufacturers.

The surge in AI infrastructure has played a major role in the current pressure on memory and other components. Demand from AI systems has reshaped the supply chain and pushed prices higher.

Our Take

If Chen's forecast proves accurate, you may see cheaper PCs and memory products from late 2027. Nonetheless, there is still high AI demand and unpredictable supply situation on the market. Right now, we will take the forecast as a warning sign.

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