In 2025, the PC hardware market is experiencing an unexpected trend of 'reverse upgrading' as a result of the steep hike in memory prices. Specifically, the cost of DDR5 memory has skyrocketed, multiplying by 2 - 3 times over the course of the year. To put it into perspective, the price of a 64GB DDR5 kit is now high enough to buy two PS5 consoles. This sharp rise has significantly driven up the expenses associated with building a new PC platform.

Faced with these escalating costs, consumers are now flocking to the more budget-friendly DDR4 ecosystem. This shift has, in turn, triggered a resurgence in sales of AMD's older AM4 platform. The AM4 platform has emerged as a viable option for consumers looking to sidestep the exorbitant prices of DDR5. Its long lifecycle, coupled with relatively low upgrade costs and a robust demand for second-hand components, makes it an attractive choice.

Interestingly, while DDR4 memory prices have also surged by over 400% within the year, the situation pales in comparison to the supply shortage of DDR5 in the consumer market. This shortage can be attributed to a sudden spike in demand from AI servers. Consequently, the three major DRAM manufacturers have prioritized production capacity towards meeting this server demand.

The repercussions of the high DDR5 prices are being felt across the industry. Mainboard manufacturers, for instance, have witnessed a staggering 50% year-on-year decline in sales. This downturn has forced them to revise their sales targets downwards.

Despite the AM4 platform enjoying a 'second spring' in terms of popularity, DDR4 prices continue to remain elevated. In fact, some consumers are even contemplating the use of older DDR3 or DDR2 memory as a cost-saving measure.

Looking ahead, market forecasts paint a rather gloomy picture. The memory shortage is expected to persist until the fourth quarter of 2027, with consumer product prices showing little signs of a decline in the near future.