It may take several more years before memory prices drop, market experts warn.

Brief overview of the memory market situation

What’s happening Why it matters
Memory prices regularly fluctuate: they rise first, then fall. Currently they are in a growth phase. This is a typical cyclical nature of the market, but the “decline period” could last several more years. Market participants warn that a new price downturn is almost impossible. No guarantees exist: prices may stay at current levels or even continue to rise.

Why cloud giants affect the market
1. Long‑term contracts

- Large services (cloud providers) sign supply agreements for memory lasting from 3 to 10 years.

- Such agreements lock in demand and, consequently, price dynamics for the coming years.

2. Declining role of PC manufacturers

- Companies focused on personal computers are now “second‑tier” priority consumers of memory.

- They report that rising component costs will push them toward higher prices for their own devices.

3. Practical example

- Seagate Technology announced the need to prepare for long‑term price increases in memory and urged treating this as a new market norm.

Reaction of memory manufacturers
Manufacturer Comment
SK hynix In the past most contracts were annual; now they are multi‑year. This is due to the AI boom, which boosts demand for memory.
Micron Technology Confirms a similar trend: customers increasingly need long‑term supplies.
Broadcom Officially stated it has orders through 2028—another signal of rising demand linked to AI applications.
Meta (Facebook) Deploying new AI accelerators, concerned about HBM availability, but plans to secure enough volume for its own needs.

Conclusions
- Memory prices are in a growth phase, and a new downturn is almost impossible in the near future.

- The key driver is long‑term contracts from cloud giants that set demand and pricing policy.

- PC manufacturers must prepare for higher prices on their products.

- The entire memory sector (manufacturers, large consumers) is already adapting to the new norm: long‑term contracts, orders through 2028, and preparation for limited access to high‑performance memory.

Thus, today’s memory market is in a stable growth state that will be sustained by demand from cloud services and AI applications.