BofA Sees Global DRAM ASPs Jump 21% in Third Quarter

DRAM prices are set to post another sharp rise in the third quarter, according to a new market outlook.

Bank of America Global Research projects global DRAM average selling prices, or ASPs, will climb about 21% in the third quarter from the previous quarter, Blockbeats reported on July 19, citing the firm's recent Global Memory Tech report. That is 8 percentage points higher than the 13% increase TrendForce recently forecast for third-quarter DRAM prices.

The firm said spot demand for DRAM remains strong. Prices for mainstream DDR5 and legacy DDR4 products have continued to rise this month from June. Orders for higher-priced HBM4 have also increased recently, while the share of orders for relatively cheaper HBM3E has declined.

Bank of America also highlighted that DRAM sold under long-term supply contracts accounts for well below 50% of total sales. The share sold outside long-term contracts is close to 60%.

Even within long-term contract volumes, prices for some shipments have already been set about 10% above the previous quarter. Bank of America added that some original equipment manufacturers, or OEMs, are bringing forward orders, creating the possibility that both DRAM and NAND prices will rise more than 20% in the third quarter.