Why the AI Boom is Hoarding RAM and SSDs: Price Hikes Explained

Why Your Next PC Upgrade Will Cost More: The AI Memory Squeeze

If you have noticed computer memory and storage prices creeping up, you can blame the Artificial Intelligence boom. A global shortage of RAM and SSDs is hitting the market, driven by the massive infrastructure needed to train AI models.

Here is what is happening behind the scenes and how it affects the average consumer:

• AI Eats the Supply: AI requires a specialized, super-fast type of memory called High-Bandwidth Memory (HBM). Making HBM is complex and expensive. To keep up with the AI gold rush, major manufacturers like Samsung and SK Hynix are converting their factories to produce AI chips. This leaves significantly less production capacity for the standard RAM and Flash memory used in home computers and phones.

• The Data Center Takeover: It isn't just RAM; AI data centers are also buying up high-performance SSDs to speed up their operations. This demand is so intense that manufacturers are prioritizing these massive corporate contracts over consumer products.

• Micron Exits the Room: The shift is so dramatic that Micron Technology has announced it will exit the consumer RAM and SSD business (including its Crucial brand) by early 2026. They are shifting entirely to supporting big AI clients, leaving a massive gap in the consumer market that other companies may not fill.

• Higher Prices, Lower Specs: For consumers, this leads to a "Price Tsunami." Expect smartphones and laptops to get more expensive. To avoid raising prices too high, some device makers might start using lower-quality memory or storage components, meaning you could pay the same price for a slower device.

When Will It End?

Don't expect a quick fix. Building new semiconductor factories takes years. Experts predict that because the industry is so focused on AI, these shortages and high prices will likely last until at least 2027.