The cost of RAM (Random Access Memory), a core component in a wide range of electronic devices, has seen significant increases since October 2025, largely attributed to the growing demand from artificial intelligence (AI) data centers. This surge is projected to affect the pricing and availability of consumer electronics, including personal computers (PCs) and smartphones, throughout 2026 and potentially into 2027. While some manufacturers are implementing measures to mitigate immediate impacts, industry analysts forecast declines in global device shipments and a shift in market dynamics.
Memory Price Increases and Core Drivers
Memory chip prices have increased notably, with some types doubling or quadrupling since last year. The primary factor behind these escalating costs is the substantial growth in data centers and supercomputers supporting AI technologies, which require significant quantities of RAM. This demand has created an imbalance between supply and market availability.
Price Volatility
RAM prices have more than doubled since October 2025. Some vendors with limited existing inventory have reported price increases up to five times their previous costs, while those with larger stock saw increases of 1.5 to 2 times.
AI Supercomputers
New AI supercomputers, such as NVIDIA's Vera Rubin (featuring up to 54TB of RAM across 36 Vera CPUs and 20.7TB across 72 GPUs) and AMD's Helios AI rack (supporting up to 31TB of memory across 72 AMD Instinct MI455X GPUs), consume substantial memory resources for AI model development and inferencing.
Hyperscaler Demand
Mike Howard of Tech Insights noted that the finalized memory requirements from major cloud service providers like Amazon and Google for 2026 and 2027 indicate that current supply levels will not meet projected demand.
Component Cost Impact
Steve Mason, general manager of CyberPowerPC, indicated that component costs have increased by approximately 500% over recent months. RAM's proportion of a PC's total cost has shifted from 15-20% to 30-40%.
Wonjin Lee, Samsung's marketing leader, stated at CES that semiconductor supply issues are anticipated to affect all sectors, with prices already increasing. David McAfee, AMD's Corporate Vice President, described recent DRAM pricing volatility as unprecedented, expressing an expectation for prices to stabilize within the first three to six months of the year without elaborating on the rationale.
Impact on PC and Smartphone Markets
Industry analysts and manufacturers project significant effects on the availability and pricing of consumer devices.
Shipment Declines
Gartner forecasts a decline of over 10% for global PC shipments and approximately 8% for smartphones in 2026, attributing this to increased memory prices.
Disappearance of Entry-Level Devices
Ranjit Atwal, a Gartner research director, stated that the sub-$500 entry-level PC segment is expected to disappear, as vendors would struggle to build these devices profitably. PC manufacturers are expected to transfer cost pressures to customers, particularly impacting PCs priced between $500 and $1,000.
AI PC Pricing
AI devices, equipped with specialized hardware like Neural Processing Units (NPUs), require more memory for AI processing and are often sold at a premium. Microsoft mandates a minimum of 16 GB for its Copilot+ PCs, and Gartner recommends at least 32 GB for new enterprise PCs. Despite earlier expectations for the average price of AI PCs to fall, this has not occurred, contributing to slower adoption. HP reported that DRAM now constitutes 35% of its PC build cost, an increase from 15-18% in the previous quarter. Atwal predicts AI PCs will remain in the premium category and may not exceed 50% of the market until 2028.
Product Price Adjustments
Dell's XPS 14 model, initially expected at $1,650, was announced with a starting price of $2,050. The XPS 16 was announced at $2,200 from an initial expectation of $1,850.
Smartphone Market
Similar effects are anticipated in the smartphone market, with entry-level models expected to become more expensive, potentially narrowing the price advantage of budget options.
Manufacturer and Industry Responses
Various manufacturers are responding to the market conditions with different strategies, including leveraging existing inventory and implementing technological optimizations.
Inventory Mitigation
Nish Neelalojanan, Intel's Senior Director of Product Management, confirmed that most of Intel's laptop-making partners (OEMs) possess approximately 9 to 12 months of inventory due to long lead times in securing memory. A Dell representative clarified that a version of the XPS 14 displayed at CES was not an entry-level configuration, and more affordably priced systems are anticipated.
Intel's Efficiency Measures
Intel is implementing architectural and software adjustments to address memory reliance. The Intel Core Ultra Series 3 architecture features an increased L3 cache on the chip, accessible to the E-cores, which acts as an intermediary between the CPU and RAM. This aims to reduce the chip's dependency on system memory by up to 18MB of L3 cache. Additionally, a software memory slider is being developed to offer Independent Software Vendors (ISVs) control over memory utilization.
AMD's Platform Strategy
David McAfee suggested that the durability of AMD's AM4 and AM5 platforms could benefit gamers, as these platforms allow for CPU upgrades without requiring new RAM or motherboards. McAfee predicted a trend in 2026 towards component upgrades rather than full system replacements. AMD's X3D chips, which incorporate 3D V-cache, are reported to be less impacted by slower RAM due to their substantial onboard L2 and L3 cache.
Market Outlook and Projections
Analysts anticipate that the current memory market conditions will influence purchasing patterns and device lifecycles.
Extended Device Lifespan
Gartner expects both corporate and home buyers to extend the lifespan of their existing PCs, projecting a 15% increase for businesses and 20% for consumers.
Purchase Timing
Individuals considering a system refresh are advised to purchase soon, as prices are expected to inflate and remain elevated until at least the end of next year.
Supply Shortage Duration
The global memory supply is increasingly allocated to the AI industry, benefiting companies like OpenAI, Microsoft, and NVIDIA. Ranjit Atwal describes this as a unique situation where demand-side pressure from hyperscalers is increasing memory costs, rather than traditional production issues. This shortage is projected to be long-lasting, potentially extending through late 2027.
Retail Impact
Danny Williams from PCSpecialist anticipates that price increases will persist into 2026, potentially leading to a reduction in consumer demand. Manufacturers may "accept a unit volume decline to sustain profitability," which could affect the retail availability of PC products. Gartner anticipates further price increases of 130% for DRAM and NAND flash by the end of 2026.