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Citigroup: RAM prices to rise throughout 2021
Many experts predicted that DRAM prices would skyrocket earlier this year. Citigroup says the trend will be longer-term as memory makers are interested. The growth in prices for RAM will be observed until the end of this year.
Image source: TSMC
Capacity constraints coupled with rising demand for memory will drive DRAM prices, according to the analyst note. Even if manufacturers now decide to increase capital expenditures to expand capacity, this will only affect the market in six months, at best.
A new cycle of growth in demand for RAM, according to Citigroup experts, may last two years. The largest market players represented by Samsung Electronics, SK Hynix and Micron Technology are interested in this, and therefore are unlikely to increase capital expenditures this year by more than 5%. For comparison, in 20221 they increased by 23% at once. The growth in capital expenditures will also be constrained by objective factors: Samsung intends to pay more attention to the contract business.
Experts summarize that in calendar year 2021, the growth in demand for RAM will reach 37% in the server segment, 21% in the segment of personal computers, and 12% in the segment of mobile phones and smartphones. Shares of memory manufacturers will become more attractive for investments.