Bank of America's Q3 contract price check reveals server DRAM pricing is up 20-30% QoQ, spearheaded by high-speed LPDDR5, exceeding the market consensus of 20% or less. Spot demand for commodity DDR5 and legacy DDR4 is healthy, with July prices increasing MoM, and a near-term rise in orders is shifting toward higher-priced HBM4 over HBM3e. BofA also forecasts a 10%+ NAND ASP rise in Q3, driven by a 4% WoW increase in 1Tb wafers.
Memory contract pricing is accelerating beyond expectations, driven by strong server DRAM demand and HBM4 transition, allowing suppliers to push significant QoQ increases.