Core Viewpoint - The dramatic increase in memory prices, particularly for DDR4 RAM, is driven by the explosive growth in AI demand, leading to a supply-demand imbalance that is expected to persist until at least 2026 [4][7]. Price Surge - Memory prices have surged significantly, with some DDR4 memory prices increasing by over 200% in markets like Changsha [2][3]. - For instance, a popular DDR4 3200MHz 16GB memory kit rose from under 300 yuan in June to 660 yuan in October, marking an increase of over 160% in just four months [2]. Supply and Demand Dynamics - The AI industry's rapid expansion is the primary driver behind the soaring memory prices, with AI servers requiring eight times more memory than standard servers [4]. - Companies like OpenAI are ordering 900,000 wafers monthly, consuming 53% of the global DRAM monthly production capacity [4]. - Major memory manufacturers are reallocating production capacity towards HBM and DDR5, further constraining DDR4 supply [4]. Panic Buying and Market Behavior - The supply-demand imbalance has triggered panic buying, with distributors hoarding stock to lock in prices, creating a vicious cycle of rising prices [5]. - Some distributors are placing orders two to three times larger than usual, while major electronic manufacturers are securing long-term supply contracts, leaving smaller clients to compete for limited stock at inflated prices [5]. Industry-Wide Impact - The price increase of memory has affected the entire electronics industry, leading to higher costs for new smartphones and computers [6]. - For example, the Redmi K90 series has seen price increases of 100 to 400 yuan due to rising memory costs [6]. - The DIY market is also feeling the impact, with DDR5 memory prices doubling and previously affordable options becoming unavailable [6]. Future Price Trends - The price increase cycle for memory is expected to last until 2026, driven by ongoing strong demand from AI and cloud computing sectors [7]. - Unless an economic downturn occurs that reduces demand, the supply-demand imbalance in the memory market is unlikely to ease in the short term [7]. - DDR4 memory remains in high demand, particularly in data center applications, and shortages are anticipated to continue into mid-2026 [7].