AI-driven demand for memory set to push device prices higher in 2026

The price of random access memory (RAM) has surged in recent months and industry executives warn the increase could raise the cost of consumer devices in 2026.

RAM, a component used to store code while a device is in use, is embedded in a wide range of products from smartphones and laptops to smart TVs and medical equipment. Once one of the least expensive computer components, its price has risen substantially — more than doubling since October 2025 — amid a jump in demand from data centres that support artificial intelligence (AI) workloads.

Companies that manufacture end-user devices often absorb modest component cost increases. But multiple industry sources say the current rises are large enough that many manufacturers will pass them on to consumers.

"We are being quoted costs around 500% higher than they were only a couple of months ago," said Steve Mason, general manager of CyberPowerPC, a custom PC builder. He added that rising component costs would force manufacturers to make decisions about pricing, and that devices that rely on memory or storage face the potential for price increases.

Different RAM producers have responded to the market imbalance in varied ways. Danny Williams of PCSpecialist said some vendors with larger inventories have managed more modest increases — perhaps 1.5x to 2x — while others with limited stock have raised prices by up to 5x.

Chip industry observers point to AI as the primary driver behind the surge. "There's been a surge of demand for memory chips, driven above all by the high-end High Bandwidth Memory that AI requires," said Chris Miller, author of Chip War. He said the AI-related demand has pushed up prices across different memory types.

Mike Howard of Tech Insights explained that cloud service providers finalising memory commitments for 2026 and 2027 have given suppliers clear visibility of future demand. Those plans — from major hyperscalers such as Amazon and Google — indicate demand levels that suppliers cannot meet with current supply, he said.

With this convergence of demand clarity and constrained supply, Howard said suppliers have steadily pushed prices upward, and in some cases paused issuing price quotes, a move he described as a signal that suppliers expect prices to continue to rise.

The shift is beginning to affect the economics of consumer devices. Howard said memory typically made up 15 to 20 percent of the cost to build a PC, but current pricing has pushed that share toward 30 to 40 percent. He estimated that a typical laptop with 16GB of RAM could see its manufacturing cost increase by $40 to $50 in 2026. A typical smartphone could see a roughly $30 increase in build cost. He said those increases will likely be passed on to consumers.

Industry participants say firms that anticipated rising demand and built inventories ahead of time are better placed to weather the current market. However, those companies are the exception rather than the rule, and margins in many consumer categories are not deep enough to absorb large component cost hikes indefinitely.

Some manufacturers are already shifting focus. Micron, previously a major consumer RAM supplier through its Crucial brand, announced it would stop selling that brand to concentrate on AI-related demand. Mason said Micron's move removes one of the biggest players from the consumer market, reducing choice for buyers. He also suggested that if Micron redirected production capacity to AI customers, it might free capacity for other suppliers to serve consumers, resulting in a potential balance over time.

Market intelligence gathered by device builders and analysts indicates pricing and supply will remain challenging worldwide through 2026 and into 2027. For consumers, the implications are straightforward: either pay more for the performance they need, accept less powerful devices, or delay purchases and keep older devices longer.

"Computers are a commodity — an everyday item that people need in a modern day world," said Williams. He predicted that consumers will have to choose between paying a higher price for required performance or compromising on capability. He also suggested that some buyers may simply continue using existing hardware for longer.

Where pricing lands will depend on how demand from AI data centres evolves, how quickly suppliers can expand capacity, and whether large producers sustain their focus on the enterprise market. For now, the memory market remains volatile, and the consequences for consumer device prices look set to play out through 2026.

Key Topics

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