DDR4 RAM prices climbing twice as quickly as DDR5, as memory shortage boosts demand for older CPUs

With memory prices out of control, aging DDR4 RAM has become a popular alternative. However, consumers are finding that the savings aren’t as significant as expected. A new report from Ctee confirms that the cost of older modules is rising more than twice as fast as DDR5 memory.

Spotted by Wccftech, the Taiwanese site cites recent Goldman Sachs data on the DRAM market. The article notes that the gap between spot prices, which reflect current market value, and contract prices is widening. DDR4 spot prices are 172% higher than the agreements made between companies and memory manufacturers like Samsung or SK Hynix. DDR5 spot prices differ by a still considerable, but more modest 76%

Goldman Sachs claims that the divide between spot and contract prices is unsustainable. RAM producers are hesitant to sign reasonable long-term contracts with smaller customers. Once adjusted, the effects will trickle down to all devices and components that rely on DRAM. Inflated memory prices have already led to costlier laptops and GPUs.

Another factor making DDR4 RAM less appealing is that factories have shifted away from assembling the modules. Samsung originally intended to focus production on DDR5 and the high-bandwidth memory that AI data centers crave. While the company has paused those plans, the added stock is aimed at servers that rely on the older-generation tech.

DDR4-based systems may be cheaper, but with caveats

In some cases, building a system with DDR4 RAM can still be a more affordable option. With strained budgets, gamers may be willing to accept lower-performance desktops. Intel loyalists benefit from 13th and 14th-gen CPUs, which support DDR4 memory. ASRock saw an opportunity with the new H610M Combo motherboard that accommodates both generations of RAM.

AMD AM4 CPUs like the Ryzen 7 5700X, along with compatible motherboards, are also desirable targets. Sadly, the processor has become more expensive as demand has increased.

Despite their ingenuity, buyers may not be able to escape the crippling memory shortage.