Memory prices surge 300% as AI demand drives supply shortage, costs to hit 30% of product pricing

Samsung RAM prices have doubled -- and the worst is yet to come

* Samsung's DRAM and SSD prices have doubled in South Korea since November 2025 * Samsung is reportedly focusing on producing memory for AI enterprises * An analyst predicts that 30% of the total cost of manufacturing products could be on memory The PC hardware market is arguably in its worst state in years due to the ongoing memory crisis, leading to price increases nearly across the board - and with a troubling case from a popular manufacturer, consumers may fear the worst. That popular manufacturer is Samsung, and prices for its DRAM and SSDs have doubled or 'sometimes even tripled' in the last two months in South Korea, according to TheElec. This is reportedly due to Samsung's focus on producing memory for AI enterprises, ultimately leading to a supply shortage for consumers, which sounds similar to Micron's approach in its push towards AI. For example, a DDR5 RAM module was sold at 100,000 won in November, which is around $69. However, recently, the same Samsung RAM stick was sold for 400,000 won, placing it at around $278. That's a 300% price increase for only 16GB of memory. Distributors are also buying both RAM and SSDs from Samsung at higher prices, which directly impacts consumer prices - and while this report focuses on the crisis in South Korea (where Samsung is based), it's not unreasonable to believe this will extend to other regions. A Counterpoint Research analyst, MS Hwang, predicts that 30% of the total manufacturing cost for products will be on memory alone, as reported by TweakTown. If this estimate is correct, we could essentially see all hardware that uses memory skyrocket in price, and with the current state of affairs, where most manufacturers are pushing for a greater focus on AI, it's not looking very positive for consumers in 2026 and beyond. Analysis: I hope the AI push fails, and I'm not afraid to say it There's no denying that AI has been beneficial for PC hardware, specifically for gamers, with Nvidia improving its DLSS upscaling models for better performance and image quality. However, I think AI is currently doing more damage than good for consumers, and I'm hoping the bubble bursts. Prices are increasing at unprecedented rates for RAM and now, SSDs, with Best Buy's 2TB options far above normal pricing. A prime example is the Samsung 990 Pro 2TB SSD available for $399.99, which is the price you would normally find for a 4TB option. AI is taking the reins of the PC hardware market and its trajectory, and I fear that the longer this continues, the more normalized it could become, until high prices for such hardware become irreversible. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button! And of course, you can also follow TechRadar on YouTube and TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.

Memory will be 30% of the total cost of the product that uses it following incoming price hikes

TL;DR: DRAM and NAND flash memory prices have surged nearly 300% since early 2025 due to AI companies dominating supply for data center expansion. This high demand is expected to keep prices rising through 2028, making memory a significant cost-up to 30%-in electronic device manufacturing. DRAM memory prices have skyrocketed since the beginning of 2025, with estimates now estimating that prices have increased by nearly 300%. In addition to DRAM, NAND flash prices have already increased, and these hikes can be attributed to AI companies pulling manufacturing supply away from the consumer market. The thirst for more memory from AI companies isn't expected to be quenched for some time, as billions of dollars have been thrown into the global race to create the most sophisticated AI model possible, and no company participating is expected to just stop building and upgrading the data centers that provide more power to their infrastructure. Counterpoint Research, a global technology market research firm in the TMT industry, was recently cited by The Wall Street Journal, and explained that AI firms are crowding out other buyers of memory, and the disproportionate supply allocation is due to builders of data centers who are happy paying a premium. MS Hwang, a research director at Counterpoint Research, who has been in the industry for more than 30 years, stated prices are expected to continue increasing, with supply already being allocated to companies for 2026, 2027, and 2028. "You gotta buy a plane ticket and get that allocation from manufacturers right now. Those guys are now selling their capacity not only for 2026, but also 2027 and 2028," stated Hwang Additionally, Hwang predicts that memory will soon become one of the most expensive components in any electronic device that requires it, with the analyst stating that memory will become as much as 30% of the total cost to build the product.