Memory prices could surge 95% by early 2026 as AI demand creates global RAM shortage

How Is Low-Cost Computing Handling Memory Price Hikes?

Low cost electronics, like this Raspberry Pi 5 with 8GB of RAM, are especially vulnerable to effects of the ongoing memory shortage. It's no secret that demand for AI hardware has increased demand for computer memory. Industry analyst TrendForce expects the contract price for memory to increase by up to 95 percent in the first quarter of 2026, and that comes after similarly aggressive changes through the second half of 2025. The burden of the surging price has fallen with particular weight on low-cost computing companies like Raspberry Pi. The Raspberry Pi 5, with 16 gigabytes of RAM, has nearly doubled in price from US $120 in November 2025 to $205 today. Framework, a company that makes highly configurable and repairable laptops, has announced two rounds of memory price hikes. Others, such as Orange Pi, have made no official comment, but the price of an Orange Pi 5B with 16 GB of RAM has surged from $160 at the start of 2025 to $312 today. "If you have a product that's relatively low cost, the memory is going to be a relatively large portion of it," says Raspberry Pi CEO Eben Upton. Most Raspberry Pi computers of a particular model have the same board design and equip the same hardware -- except for the memory, which can be upgraded to suit the user's needs. With little else to differentiate them, Raspberry Pi has to pass increased memory costs on to customers. The situation is worsened by the way memory is produced. "Generally, you have a single fungible pool of manufacturing capacity in DRAM that you can use to do anything. It can be used to make commodity DRAM, DDR, LPDDR, or you can use it to make HBM [the type most commonly used for AI hardware]," explains Upton. That means low-cost computer manufacturers are competing for the same pool of supply as AI hardware giants. And with the world's most valuable tech companies spending billions on AI infrastructure, low-cost computer manufacturers have little hope to negotiate the price. Larger computer manufacturers can mitigate the memory price shock by negotiating larger or longer contracts in exchange for lower prices, or by tolerating a lower profit margin. Others are rumored to have stocked up on memory as prices surged. RELATED: How and When the Memory Chip Shortage Will End But these strategies aren't available to companies that sell computers at low price points or in lower volumes. The lower price of these computers means there's not much margin to absorb a price increase. Companies like Raspberry Pi also purchase in lower volumes, which means it's difficult to negotiate a volume discount. It's a perfect storm for low-cost computing and one that, in contrast to 2025's U.S. tariff hikes, has led to immediate and unavoidable problems. While tariffs did place some pressure on price for low-cost computers, that pressure wasn't uniformly felt. Raspberry Pi, which manufactures its computers in the United Kingdom, found itself in a better position than those that manufactured in China. The memory price increase, on the other hand, applies to all companies in this industry, no matter where or how manufacturing takes place. Companies that build PCs with removable memory are turning toward a bring-your-own-memory approach. Framework offered this option before memory prices increased, but several specialty desktop manufacturers have recently announced similar bring-your-own-RAM options. However, this isn't possible for many low-cost computers, including those from Raspberry Pi, because they solder the memory to the mainboard. Instead, Raspberry Pi is using a different strategy. A new iteration of the Raspberry Pi 4 Model B moved from a single memory module to a dual-module configuration. "As you can generally buy smaller RAM more easily than larger RAM, we can use a pair of back-to-back modules instead of a single larger one. You have more vendor diversity, more vendor flexibility," Upton says. He expects the current pricing will remain the same, but the change provides more options when looking to source memory in the future. Of course, there's another strategy all low-cost computing companies can use. They can simply offer less memory. Raspberry Pi introduced a version of the Raspberry Pi 5 with 1 GB of RAM in December 2025. It debuted at $45 and was the only Raspberry Pi 5 model to avoid the February price increase. Raspberry Pi was among the first to do this, and in retrospect the decision looks like the canary in the coal mine. Analysts predict that price-constrained devices, such as budget smartphones, will soon be forced to cut memory or raise prices (and possibly both). While this has yet to happen with brands well-known in North America, there are hints of it in budget phones from brands that are popular internationally. Poco recently added a less expensive 4 GB version of the M7 Plus 5G smartphone and the new Honor X6d smartphone will ship with 4 GB of memory to start, a downgrade from the preceding Honor X6c, which had 6 GB. Both Poco and Honor are based in China. So, when will memory prices come down or, at least, stop rising? Upton expects the timing to be similar to past memory price cycles, which means it's likely to last for at least a few years. "Memory will be expensive this year. It will probably be expensive next year," he said, adding that he'd be "a little bit surprised" if price increases have not leveled off into 2028. In any case, he cautioned against being too sure of the future. During the chip shortage of 2021 through 2023, companies and consumers worried that inexpensive logic chips were a thing of the past, but the situation eventually returned to normal. "Like all bubbly phenomena, it's very hard to measure."

RAM prices keep going up -- what is RAMageddon, and why is it getting worse?

It's AI's world now, and we're just living in it. If you've looked to upgrade your laptop, add memory to your PC, or even want to pick up a new games console in recent months, you'll no doubt have noticed prices are higher than ever. RAMageddon is here, and consumer RAM has climbed hundreds of percent due to a push to empower our future AI overlords. That means just about everything tech-wise has been affected, but why? And how? We're here to clear up the situation, show you your options, and dive deep into what's been affected. RAM pricing crisis: Top stories What's happening? * A DRAM chip oligopoly controls around 95% of production * A huge influx of demand from AI and data center companies has caused a drought * That's spiking the price for consumers, as business customers have more money to throw around My colleague Jason England explained it best when comparing the current RAM market to an apple orchard (no, it's not a new product from the Cupertino firm). DRAM is the key ingredient for just about anything RAM-wise, and those are the apples in this metaphor. Three main orchards are growing these crunchy, technological apples: Samsung Electronics, SK Hynix, and Micron Technology. Between the three of them, they cover the 'apples' for around 95% of the world. All of a sudden, however, huge firms want as many apples as they can get their hands on. The likes of OpenAI, Microsoft, Google, and more are looking to power AI models that require huge amounts of resources, including those shiny apples. Essentially, those orchards are shipping apples as soon as they're ready to pick, and they can't turn down the mammoth orders from Big Tech Apple Pie makers. That means you or I, more casual apple enjoyers, are left hungry, or forced to pay over the odds for an apple or two. Earlier this month, Lenovo North America President Ryan McCurdy said "If the infrastructure is critical in the next three, six, 12 months, and the pricing sensitivity is high, then we get into a scenario where we're acting quickly because essentially the current stock that is at our distributors and at our partners [has] some of the most attractive product pricing that will exist for the next six to 12 months." In short, if you need RAM, it's probably a good idea to buy it sooner rather than later. Why are prices skyrocketing? * Supply & demand -- AI and data centers have been the leading force behind the massive surge in demand * That leaves this DRAM chip oligopoly in a position to charge whatever they want for the very limited consumer supply Leaving the fruit analogy behind, consumers and non-AI manufacturers are essentially working to snap up as much of the pie as they can. That's become a lot harder as one orchard closed its doors to consumers, with Crucial (part of Micron) no longer shipping to them. They might not even be alone in that regard, reducing the options (and availability) open to end users that can't invest millions or billions in buying units en masse. Naturally, the companies that do have RAM to sell can name their own price, knowing consumers don't really have much of an option other than to pay it if they're desperate. What tech will be impacted? * PC components like RAM, SSDs and GPUs, and PCs as a whole * Laptops * Games consoles * Phones * Tablets Oh boy, here's the trouble. DRAM is essentially included in, well, anything in terms of modern technology. It began with the obvious: PC components. CyberpowerPC and Maingear announced that memory prices were surging and that consumers would need to pay more by December 2025, while Framework wasn't far behind. Apple has long charged significant sums to improve RAM in its Mac lineup, but it's not just computers. Tablets and phones will be affected, too, but spare a thought for the likes of Valve. The company's Steam Deck is facing stock shortages, but the company behind the likes of Half-Life and Counter-Strike was also poised to launch a new home console/PC hybrid in 2026, the Steam Machine, which is now delayed due to RAM shortages and pricing. While Nintendo Switch 2 squeaked out ahead of the RAM crisis, the Japanese company has been caught up in it, too, and potentially PlayStation. Bloomberg reports that the Switch 2 and the PS5 could see price increases, while Microsoft has already had some of its own in recent months on its Xbox hardware and services. The ongoing RAM crisis could also delay the PS6 and next Xbox. How long will this last? * When production capacity is expanded in a few years * Or until the AI bubble bursts -- whichever comes first There are suggestions that the shortage could run until 2028 (from Micron itself), prompting suggestions that older, slower DDR4 RAM could be poised to make a comeback. We could even see proposed AI features in Windows and Mac laptops rolled back as machines begin shipping with less RAM. There's a chance supply gets closer to meeting demand, but it's too soon to say. Micron has reportedly committed to building a new DRAM facility, but it won't be open until 2028. It's costing the company almost $10 billion, though, so don't expect many other similar facilities to pop up. On the other hand, it feels as though public perception is starting to change on AI usage. Could that mean there's less need for AI, that consumers are beginning to lose interest, or that its environmental impact is becoming more obvious? OpenAI has made $1.5 trillion in chip commitments, while Reuters reports the company has made $12 billion in annual revenue this year. Could we be left with a lot of apples left to rot if AI isn't the future many (including shareholders) are expecting? According to one analyst on X (formerly Twitter), SK Hynix, a semiconductor manufacturer, suggested memory prices will climb throughout 2026, but that customers are aware that "double-ordering" will only lead to future price increases. Outlook As much as AI feels like a limited-term bubble, it's hard for tech enthusiasts and the general population not to feel more than a little deflated. We're marching towards lining the pockets of a small few, while giving up environmental and financial stability. It's easy to feel jaded, but this kind of crisis feels a little unprecedented. We'll just have to see how things shake out in the meantime. 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