TLDR
- RAM prices forecast to increase 50-55% in first quarter 2026 versus late 2025 due to artificial intelligence chip demand
- Micron, Samsung, and SK Hynix have sold out their 2026 memory production capacity to AI companies
- High-bandwidth memory for AI requires three times more manufacturing capacity than consumer RAM
- Dell warns customers will see price increases while Apple downplays impact on product costs
- New memory factories won’t begin production until 2027 at earliest, extending shortage timeline
Artificial intelligence systems are creating a global shortage of memory chips that will drive RAM prices up more than 50% this quarter. The shortage affects everything from smartphones to laptops as AI chipmakers consume available supply.
Companies like Nvidia, AMD, and Google require massive amounts of specialized memory for their AI processors. This demand has depleted inventory for consumer electronics manufacturers who compete for the same components.
Three manufacturers control the global memory market. Micron, Samsung Electronics, and SK Hynix produce almost all computer RAM worldwide. All three companies report they have exhausted their production capacity.
Micron business chief Sumit Sadana told CNBC at the CES trade show that demand has “far outpaced our ability to supply that memory.” The company confirmed it has no available inventory for 2026.
Price Increases Hit Consumer Products
Research firm TrendForce projects average DRAM memory prices will climb between 50% and 55% this quarter compared to the fourth quarter of 2025. Analyst Tom Hsu described the increase as “unprecedented” for the memory industry.
Memory now represents roughly 20% of laptop hardware costs. That percentage has risen from between 10% and 18% during the first half of 2025. The increase forces computer makers to either absorb costs or raise prices.
Dell Technologies told investors in November it expects higher costs across its entire product lineup. COO Jefferey Clarke said the company would adjust product configurations to minimize impact but expects retail prices to rise.
“I don’t see how this will not make its way into the customer base,” Clarke told analysts. Apple CFO Kevan Parekh acknowledged a “slight tailwind” on memory prices in October but downplayed concerns.
Why AI Chips Need More Memory
Artificial intelligence processors require high-bandwidth memory that differs from standard RAM in consumer devices. HBM involves stacking 12 to 16 layers of memory chips into a single component.
The manufacturing process creates a supply constraint. When Micron produces one bit of HBM, it sacrifices production capacity for three bits of conventional memory. This three-to-one ratio explains the consumer shortage.
Nvidia’s latest Rubin GPU contains up to 288 gigabytes of HBM4 memory per chip. A complete server system combines 72 of these processors. Standard smartphones typically include 8 to 12 gigabytes of memory.
One computer builder reported that 256GB of RAM that cost $300 several months ago now sells for approximately $3,000. In December, Micron discontinued its consumer PC builder business to redirect supply toward AI and server markets.
Manufacturing Expansion Delayed
Memory manufacturers are expanding production slowly despite the shortage. The industry experienced losses in 2023 when Micron, Western Digital, Seagate, and SK Hynix all reported negative operating income.
Micron is constructing two facilities in Boise, Idaho. These factories will start producing memory in 2027 and 2028. The company also plans a New York facility scheduled for 2030.
Sandisk CEO David Goeckeler explained that short-term supply agreements make long-term investment difficult. He suggested customers commit to contracts longer than three months to encourage expansion.
Big tech companies continue increasing spending. Amazon, Google, Microsoft, and Meta invested an estimated $407 billion in 2025. Analysts project that figure will reach $523 billion in 2026.
Micron currently meets only two-thirds of medium-term demand for some customers, according to Sadana.
