Driven by strong demand from cloud service providers (CSPs) expanding their data centers, DDR5 server memory prices are climbing steadily. A new TrendForce report forecasts that the profitability of DDR5 will overtake that of HBM3e starting in the first quarter of 2026, reshaping the memory market's profit landscape.

The contract price for server DRAM in Q4 is rising sharply, with suppliers aggressively raising quotes due to surging orders. TrendForce has significantly revised its price growth forecast for conventional DRAM up to 18%-23%. This surge is fueled by the transition to high-performance computing platforms for running large AI models, which is boosting memory demand per server beyond expectations.

A market divergence is expected in 2026: DDR5 prices will keep rising throughout the year due to robust server demand, while HBM3e contract prices are projected to decline year-over-year due to intensified supplier competition and sufficient buyer inventory. This will close the current price gap, allowing DDR5's profitability to pull ahead.

ICgoodFind : DDR5's rise over HBM3e reflects shifting AI-era memory demands, requiring suppliers to adapt strategies and reshaping the global supply chain.