RAM and Storage Prices Surge 500% as AI Demand Triggers Global Memory Crisis

Reviewed byNidhi Govil

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Memory manufacturers are reallocating production capacity from consumer DDR and NAND to high-bandwidth memory for AI accelerators, causing dramatic price increases that could extend into 2027-2028. PC builders and consumers face unprecedented costs with relief unlikely until new manufacturing capacity comes online.

AI Demand Triggers Unprecedented Memory Crisis

The global memory market is experiencing its most severe supply crunch in recent history, with RAM and storage prices surging by as much as 500% in recent months. The crisis stems from memory manufacturers reallocating production capacity from consumer DDR and NAND flash memory to high-bandwidth memory (HBM) specifically designed for AI accelerators used in data centers

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Source: Tom's Hardware

Source: Tom's Hardware

According to Gerry Chen, general manager of TeamGroup, contract prices for DRAM and 3D NAND products have nearly doubled month-over-month, with December contract prices increasing 80% to 100% compared to November

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. Spot market prices tell an even more dramatic story, with 16GB DDR5 chips jumping from $6.84 in September to $27.20 by December 1st.

Industry-Wide Price Adjustments

The memory shortage is forcing widespread price increases across the PC industry. CyberPowerPC became the latest system builder to announce across-the-board price hikes, citing a 500% increase in global RAM prices and 100% rise in SSD costs

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. The company will implement price adjustments on all systems starting December 7th, affecting both U.S. and U.K. markets

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Source: PC Magazine

Source: PC Magazine

The impact extends beyond system builders. Framework has paused direct-to-consumer RAM sales to prevent scalping, while major retailers like Micro Center have removed fixed pricing tags from memory kits, switching to volatile spot pricing

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. Japanese retailers have begun limiting memory module sales, and Taiwanese distributors are forcing buyers to bundle DRAM purchases with motherboards.

Manufacturing Capacity Constraints

The root cause lies in the fundamental shift of manufacturing priorities. Memory producers like Micron, Samsung, and SK Hynix are dedicating increasing portions of their production lines to HBM, which uses larger DRAM dies than commodity memory types

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. Major cloud service providers including AWS, Google, and Microsoft are booking HBM supply years in advance to support their AI infrastructure buildouts.

Source: Tom's Hardware

Source: Tom's Hardware

Building new memory fabrication facilities requires at least three years from groundbreaking to production, meaning even if manufacturers decided to expand capacity today, new supply wouldn't come online until late 2028 at the earliest

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Market Impact and Consumer Response

The crisis is creating cascading effects throughout the PC ecosystem. Motherboard sales have plummeted 40-50% compared to the previous year as consumers delay upgrades due to prohibitive DDR5 costs

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. A 64GB DDR5 memory kit now costs more than a PlayStation 5 console, fundamentally altering the economics of PC building.

Major PC manufacturers are adapting through various strategies. Lenovo has stockpiled memory to maintain steadier pricing, while HP has warned of potential price increases or lower-specification models

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. Graphics card manufacturers AMD and Nvidia are also considering price adjustments and potentially discontinuing some low- and mid-range models

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