The global memory market is facing a severe crunch, forcing some PC manufacturers to ship systems without RAM installed. This unprecedented situation, driven by soaring demand from the artificial intelligence sector, is impacting prices across the board and is expected to continue well into 2027, according to industry analysts.
The current crisis isn’t a typical boom-and-bust cycle, a pattern the memory industry has historically experienced. Instead, it’s a fundamental shift in demand, fueled by the explosive growth of AI infrastructure and workloads. These AI applications require vast amounts of memory, particularly high-bandwidth memory (HBM) and high-capacity DDR5, leading memory manufacturers to reallocate production capacity away from consumer electronics like smartphones and PCs.
“We have seen a very sharp, significant surge in demand for memory, and it has far outpaced our ability to supply that memory and, in our estimation, the supply capability of the whole memory industry,” stated Sumit Sadana, Micron’s business chief, at the CES trade show in January . Micron’s financial performance reflects this dynamic, with net income nearly tripling in the most recent quarter and its stock price surging 247% over the past year. Samsung and SK Hynix are also experiencing similar benefits, with Samsung anticipating a near-tripling of its December quarter operating profit and SK Hynix considering a U.S. Listing amid a surge in its stock price.
The impact on consumers is already being felt. Prices for computer memory, or RAM, are expected to rise more than 50% this quarter compared to the last quarter of . This price surge isn’t limited to the latest DDR5 standard; older technologies like DDR4 and DDR3 are also experiencing increases. The situation is so dire that some vendors are reportedly selling pre-built PCs without RAM, leaving customers to source and install it themselves – a practice rarely seen in recent years.
The shift in manufacturing priorities is the core of the problem. Instead of expanding production of the conventional DRAM and NAND used in everyday devices, major memory makers are prioritizing the higher-margin memory solutions needed for AI data centers. TrendForce, a semiconductor industry analysis firm, projects that AI-centric memory will consume 70% of global memory hardware production this year. This leaves a shrinking portion of capacity for the consumer market.
The implications extend beyond simply higher prices. IDC expects average PC prices to jump by up to 8% in as a direct result of the memory shortages. IDC’s analysis suggests that new flagship smartphones in are unlikely to receive RAM upgrades, with Pro models sticking to 12GB rather than increasing to 16GB. This indicates that manufacturers are attempting to mitigate the impact of the shortage by maintaining existing configurations rather than pushing for higher specifications.
The memory shortage is particularly acute for laptops. While laptops don’t use the same physical RAM modules as desktops, they rely on the same underlying memory chips, making them equally vulnerable to price pressures. The escalating costs are expected to significantly increase the price of new laptops throughout the year.
The three primary players in the RAM market – Micron, SK Hynix, and Samsung Electronics – are currently benefiting from the increased demand. However, the long-term consequences for consumers and the broader technology industry remain uncertain. While the situation is evolving, and official forecasts are being maintained for now, downside risk scenarios are being considered for both the smartphone and personal computer markets. The memory market is at an “unprecedented inflexion point,” with demand materially outpacing supply, and the current conditions are unlike anything the industry has seen before.
The shortage isn’t expected to resolve quickly. The reallocation of manufacturing capacity towards AI-focused memory solutions is a strategic decision by memory manufacturers, and a return to prioritizing consumer electronics production isn’t anticipated in the near future. This suggests that the elevated prices and supply constraints will likely persist for some time, potentially well into .
