The AI Memory Crunch: Why Your Next PC Could Cost More for Years

There is immense strain on the world’s memory industry due to the AI revolution, and you can feel the effect of it every time you buy a new laptop, upgrade your computer or even purchase a new phone.

As per a report from TechInsights, the current memory supply only fulfills around 85% of demand. AI firms are purchasing lots of high-end memory units to build their products. It leaves very little scope for making ordinary DRAM or NAND chips for common usage.

Memory prices have been rising significantly, with certain highly demanded products seeing an increase of over 80%. Even at full capacity of operation, there are not enough memory chips to meet everybody’s demand.

New Factories Will Not Fix Prices Overnight

Memory makers are expected to build additional production plants, but construction of any factory is a time-consuming process. The first additional capacities are going to be brought into service in late 2027. Still, experts predict that the market will be tight for at least three more years. Only in five-six years can prices be reasonably reduced.

At the same time, producers are currently making huge investments in bandwidth memory for AI accelerators. Major producers such as Samsung, SK hynix, Micron, and Chinese CXMT and YMTC are striving to boost production and reinforce their positions on the market.

Your Next Tech Purchase

We believe consumers should expect a prolonged period of expensive hardware. In case you want to upgrade your PC, perhaps, adding RAM to your existing machine would be a reasonable step to take before acquiring a completely new one. Do your homework and do not pay for unnecessary capacity.

While AI might bring many wonders, it will certainly cost money to use them.

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