Perhaps the DRAM market is on the road to recovery after all. Business has picked up as of late, and according to Pai Pei-Lin, VP and spokesperson of Nanya Technology, contract prices for DRAM chips will continue to climb next month.

In a sort of domino effect, Pai said he expects Windows 7 to set in motion a long overdue upgrade cycle that has been stalled the past three years because of disinterest in Vista. This will mean even higher demand for DRAM chips, potentially reaching the DRAM market's peak it in 1995, and ultimately a shortage of chips in 2010 as memory makers reach their limits in capacity output.

According to Pai, DDR2 and DDR3 will likely split the market evenly in the first quarter of 2010, but their could be a pricing disparity. Contract prices for DDR2 chips have been rising since August and finally surpassed DDR3 this month, and that trend looks to continue for at least the next couple of months, Pai noted.

Image Credit: TomsHardware