Why Are RAM Prices Skyrocketing?

The ongoing supply and demand imbalance for memory has caused RAM prices to skyrocket. The main reason is AI and its gluttonous appetite for DRAM. Below, I'll explain in depth how this situation came to be, what the consequences are, and what we can expect from the future.
Spoiler: it's not looking too good.

Why are RAM prices going way up?

In short, RAM prices are increasing because of supply redirection and AI's overwhelming demand for DRAM. AI requires tremendous amounts of memory, and billions of dollars are being invested in building data centers to support this venture. Both HBM and DDR are in high demand. HBM or High Bandwidth Memory is more optimized for servers and data-intensive tasks, while DDR or Double Data Rate is the more consumer-grade option with lower efficiency.
Just so you get a general idea of the numbers here, Framework recently posted about this development:
"On the demand side, the boom in AI data center construction and server manufacturing is consuming immense amounts of memory. A single rack of NVIDIA's GB300 solution uses 20TB of HBM3E and 17TB of LPDDR5X. That's enough LPDDR5x for a thousand laptops, and an AI-focused datacenter is loaded with thousands of these racks!"
Now, this is a twofold problem.

First, manufacturers are prioritizing the production of HBM3E for data centers because it's far more profitable than focusing on DDR5 for consumers. They're seizing the opportunity right now and maximizing HBM production with their existing plants while the AI boom still lasts. Expanding fab capacity takes years, and it's a huge gamble, since the AI bubble might pop in the meantime. Moreover, the memory industry is generally unstable and goes through many boom and bust cycles. RAM manufacturers want to play it safe and profit as much as they can from AI with their existing capacity.

Second, since AI also uses DDR5, the current DDR supplies are bought up as well. Once again, the AI server market demands for DDR5 and LPDDR5X are prioritized over the consumer PC market. OpenAI's Stargate project, for example, is expected to require up to 900,000 wafers of DRAM per month. OpenAI signed the agreement with Samsung and SK Hynix, two major players that hold about 70% of the DRAM market. This deal alone may take up around 40% of the global memory output. Additionally, due to the upcoming shortage, PC brands like ASUS and MSI are panic-buying and trying to build up their stocks of memory chips before it's too late.

And to make things worse, the third major manufacturer, Micron, recently announced that it's exiting the consumer RAM market in February 2026. The official press release states that it's ending the consumer-grade Crucial production:

"The AI-driven growth in the data center has led to a surge in demand for memory and storage. Micron has made the difficult decision to exit the Crucial consumer business in order to improve supply and support for our larger, strategic customers in faster-growing segments."
AI is where the money is, and Micron has made its position clear. That leaves Samsung and SK Hynix as the last remaining industry leaders right now.

What this means for you

Due to tight supplies, regular consumers like you and me will have to compete for scraps, with prices doubling or tripling. With Micron stepping out, the already limited RAM supplies will be stretched even thinner. Cheap PC upgrades will be hard to find.

PC builders are also warning customers that pre-built systems are about to get significantly more expensive. Furthermore, laptop manufacturers like Lenovo, HP, and Dell are issuing price-hike alerts to their customers and rethinking their 2026 product roadmaps.

NAND flash chips used in SSDs are in high demand as well, and prices are rising sharply. It's the same production shift, just like for DRAM. Basically, the era of easy budget-friendly RAM and SSD storage upgrades has come to an end, for now at least.

We'll have to make do until more fabs are up and running to address the growing demands, or until the AI bubble pops. Either way, it sucks when all you can do is wait and hope for the best. We may have all begrudgingly accepted high GPU prices to be the norm, but I don't want the same to happen with RAM, SSDs, and HDDs. Given the situation, I feel very lucky that I got a nice laptop with 32 GB RAM last year. I hope it will last me a good while.

selma citakovic Selma is a gamer, geek and gremlin hunter with a passion for cyber security and smashing Windows bugs before they bite. She’s IBM-certified, loves real freeware, despises bloatware, and powers most of her troubleshooting with an unhealthy amount of coffee.

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