Global Memory Price Surge: AI Boom Sparks Tech Market Crisis

Global memory prices are surging worldwide, driven by unprecedented demand from artificial intelligence data centers and limited supply from major chipmakers. Consumers and businesses alike are facing steep cost increases across laptops, smartphones, and servers.

A Perfect Storm in the Semiconductor Market

The global technology industry is grappling with a dramatic rise in memory prices. Over the past year, DRAM prices have skyrocketed by more than 170%, outpacing even gold. A 32GB DDR5 kit that cost around £100 last summer now sells for over £400. Analysts warn that this surge is not a temporary spike but part of a sustained shortage expected to continue into 2026.

The AI Factor

The primary driver behind this crisis is the explosive demand from artificial intelligence companies. OpenAI, for example, secured priority access to nearly 40% of global high-performance memory production for its Stargate supercomputing project. This massive procurement has left PC makers, smartphone brands, and even console manufacturers scrambling for limited supply.

Impact on Consumers

•     Laptops & PCs: Notebook makers are raising prices and in some cases downgrading specifications to cope with rising costs. Framework Computer recently hiked DDR5 memory prices by 50%.
•     Smartphones: Brands like Samsung and Oppo have already increased prices on popular models, with mid-range devices seeing hikes of several thousand rupees.
•     Gaming & Consoles: Memory modules now cost more than entire consoles, with 64GB DDR5 kits priced above $500.

Market Dynamics

Three companies—Samsung, SK Hynix, and Micron—control about 70% of global DRAM production. Their pricing power during shortages has amplified the crisis. Samsung alone raised chip prices by 60% between September and November. Analysts describe the current market as resembling commodity trading, with RAM sold like lobster at fluctuating daily prices.

Outlook

Industry experts predict that memory prices will continue rising into Q1 2026, forcing manufacturers to rethink product strategies and shipment forecasts. Even Apple, known for its strong margins, is expected to reevaluate pricing for upcoming iPhone models.

Risks and Trade-Offs

•     Scalping & Hoarding: Some companies have pulled standalone memory products to prevent scalpers from exploiting shortages.
•     Consumer Burden: Everyday buyers face higher costs not only for premium devices but also for budget models.
•     Innovation Slowdown: Rising component costs may delay launches or reduce specifications in new devices