The reliance on random-access memory (RAM) is evident in various electronic devices, from computers to cellphones and even certain car features. Recently, there has been a noticeable surge in RAM prices as memory manufacturers shift their focus towards supplying AI companies. These firms are rapidly expanding their data centers, requiring substantial memory capacities to operate efficiently.
Mark Chen, the store manager at Uniway Computers in Calgary, noted a drastic spike in RAM prices since the beginning of November. For instance, a 32GB DDR5 memory kit that used to cost under $130 in October saw its price more than double to around $300 by mid-November. Currently, it is challenging to find the same kit for less than $400.
Micron Technology Inc., one of the major RAM manufacturers globally, recently announced its decision to retire its consumer-focused brand Crucial. The company is now shifting its focus towards serving the growing AI data center market, which offers more lucrative opportunities.
The increasing demand for artificial intelligence (AI) has led companies like OpenAI, Meta, and Google to rapidly develop data centers, creating a substantial need for high-bandwidth memory components. This demand has caused a surge in consumer RAM prices as manufacturers prioritize the production of memory chips designed for AI applications over those for personal computers.
The International Data Corporation predicts a decline in smartphone sales in 2026 due to memory component shortages. The effects of the memory price surge are already evident in the personal computer market, impacting parts retailers and customers who build their own PCs.
As memory prices continue to rise, computer manufacturers may adjust memory configurations in PCs or reduce sales promotions to offset increased factory costs. Consumers are advised to hold off on upgrades if possible, as the duration of the price surge remains uncertain.
With Micron exiting the consumer memory market to focus on AI clients, the situation is expected to worsen. While products like cellphones may not see immediate price hikes due to advanced contracts securing RAM components, the impact is likely to be felt across various electronic devices in the near future.