TrendForce reports server DRAM prices are moderating after Q2 spike, signaling demand elasticity.

Price hikes of server DRAM chips are expected to moderate to 13–18 percent sequentially this quarter as US cloud service providers have locked down capacity through early long-term supply agreements, according to TrendForce Corp.

Contract prices for server DRAM chips skyrocketed by 53–58 percent in the second quarter, the Taipei-based researcher said in a report.

Third-quarter price increases will mainly affect customers that did not sign long-term agreements or reflect adjustments for new orders not covered by existing agreements.

"We expect contract server DRAM prices to climb in a narrower range each quarter from the second half of this year to the second half of next year," TrendForce said.

Despite this moderation, the uptrend trajectory remains unchanged as supply scarcity is expected to continue. With CPU supply projected to catch up in the second half of this year and next year, server production should scale up significantly, which would reinforce a short supply of DRAM chips. As a result, cloud service providers are likely to seek additional DRAM capacity next year.

The supply of registered dual in-line memory modules (RDIMM)—computer memory modules used primarily in general-purpose servers and high-end workstations—would rise 15–20 percent annually next year, significantly falling behind the projected growth in server CPUs. This imbalance could lead to an RDIMM shortage next year.

High-bandwidth memory chips used in artificial intelligence servers are expected to see average selling prices gain 8–13 percent this quarter, compared with a rise of up to 58 percent last quarter.