Despite showing resilience in their past performance, Reminiscence’s latest financial results seem destined for another disappointing quarter, with concerns mounting over the company’s ability to regain momentum. According to the latest findings from TrendForce, prices are expected to rise by a further 3-8% over the next three months.
The increased cost to improve also affects graphics memory, although this wouldn’t necessarily cause top-tier graphics cards like the Nvidia GeForce RTX 3090 to suddenly surge in value overnight; however, it may influence the retail price of the forthcoming Nvidia GeForce RTX 5090?
While worth fluctuations can arise from numerous factors, this latest TrendForce report highlights the primary drivers behind impending increases and provides insight into the trends.
As PC DRAM prices have reached a peak, they underscore the surge in demand for servers, driven by increased requirements for data processing and storage. While Trendforce doesn’t provide insight into the nature of this demand, the widespread reports of an explosion in AI server chip demand strongly suggest a connection to the AI server sector. The projected 3-8% improvement is significantly better than expected for devoted server DRAM, made possible by the current excess inventory levels and a lack of significant change in client demand between quarters.
While graphics DRAM demand has remained relatively stable, the anticipated 3-8% price increase is largely attributed to the introduction of new GPUs entering verification and the forthcoming advancements in GDDR7 memory production, which inherently comes with a significant premium over GDDR6. Additionally, we’re mindful of the potential threat posed by anticipated value increases at TSMC, a development that could further exacerbate the already high prices of GPUs due to Nvidia’s impressive earnings.
As quarterly comparisons unfold between Q2 2024 and Q3 2024, expected worth increases taper off as we move further away from the production hotspots that dominated earlier in the year, where Taiwanese producers remain mired in unprofitability, a challenge that will persist until resolved.
While significant increases in worth may not be universally welcomed, it remains uncertain how extensively this will affect the retail price. Meanwhile, we’ve received more substantial intel from AMD, revealing a breakthrough in reducing game download instances using AI-driven solutions.
