What's going on with RAM? — Everything you need to know about surging prices, AI demand, and global tech market disruption

If you haven't been following tech news lately, I'm here to introduce you to the latest crisis that's threatening to drive up the prices of consumer tech products everywhere.

Yes, I'm talking about DRAM, which is currently in short supply and being sold at extortionate prices. The cause? AI and the countless billions of dollars going towards the buildout of datacenters that support it.

So far, it's mostly consumer RAM that's so harshly spiked in price, but that's expected to change in 2026 as the squeeze is felt by more than just average consumers like you and me. Here's what you need to know to make sense of the ongoing RAM supply crisis.

How did RAM prices get so high?

To fully understand how RAM prices have climbed so high, let me back up a bit and give you some quick background details regarding the overall market.

The RAM market is largely controlled by three major players: SK hynix, Samsung, and Micron. These three companies produce the bulk of the DRAM chips that the world uses, and it's been that way for as long as I can recall.

For years, the RAM market remained relatively stable. Production was ample, there were plenty of eager buyers, and the three big manufacturers were able to keep prices within reason.

Manufacturers of other devices, like laptops, phones, TVs, and tablets, that use DRAM could buy in bulk on the cheap, and regular PC builders weren't being gouged at checkout.

Then came the AI boom. Firms with seemingly endless amounts of money were suddenly throwing it towards the major DRAM manufacturers, hoping to secure allotments used in AI datacenters. The three main DRAM manufacturers were happy to oblige, moving production towards specialized cases and causing a shortage practically everywhere else.

See, the big AI companies all need an unfathomable amount of high-speed memory to support their AI models. Although AI datacenters rely heavily on High Bandwidth Memory (HBM), it's just another version of DRAM — the same stuff that goes into the consumer RAM you put in your PC.

The shortage has now reached epic proportions. Because DRAM manufacturers are happy to chase the biggest pile of money, AI firms continue to place first on the priority list. This leaves what are essentially scraps for everyday consumers.

Consumer DDR5 RAM that used to cost a couple of hundred dollars is now, in many cases, approaching four digits, making memory a bigger buying decision than even a GPU.

This realization is causing panic buying and stock shortages, further worsening the situation. And speaking of making things worse, Micron — one of the world's three major DRAM manufacturers — recently decided to completely pull out of the consumer market.

Micron exits the consumer RAM market

If you thought the DRAM shortage was bad before, Micron's announcement that it's ending production of its consumer-focused Crucial memory and storage pushed it to a new, terrible level.

Micron states in its official press release that it plans to discontinue shipments of Crucial consumer products after February 2026, effectively leaving Samsung and SK hynix as the only two big companies supplying consumer DRAM.

Micron's press release has some nice sentiments thanking all the regular consumers who bought Crucial products over the years, but the subtext reads: "We're going where the money is, and you can't do anything about it."

So, are Samsung and SK hynix destined for the same future? Samsung, at least, has recently acknowledged that it plans to shift DRAM production from HBM towards DDR5 in order to maximize profits (via DigiTimes).

I can't pretend that this move doesn't make sense — consumer DDR5 RAM is a luxury right now, and prices change so quickly that you can spec out a PC build one day, only to see it go way up in price by the next. Not trying to capitalize would be a mistake, at least from the viewpoint of shareholders.

On the SK hynix side, it has also said that it plans to significantly ramp up DRAM production in 2026 (via Wccftech). However, this news shouldn't really excite you unless you're running an AI firm. Most of the product will continue to go towards the AI buildout.

Will all tech be impacted by the DRAM shortage?

I've mainly focused on the PC building aspect of the DRAM shortage so far, as it's the one that has seen the largest price increase. PC builders Maingear and CyberPowerPC have both publicly stated that prices are on the rise due to DRAM demand, warning customers that pre-built systems are about to get pricier.

However, it's not the only market that's being (or will soon be) impacted.

Your laptop, phone, tablet, TV, handheld, console, car, camera, watch (and on and on) use DRAM, and the makers of those products are also now beginning to feel the squeeze.

According to TrendForce, Dell is planning to raise prices of PCs by at least 15-20% as early as mid-December 2025, while Lenovo has warned customers that its current sales quotes and pricing guidelines will be obsolete come January 1, 2026. On HP's side, CEO Enrique Lores has said that the second half of 2026 could see PC prices go up if the DRAM situation doesn't improve.

Further aggravating the situation is another impending shortage. NAND flash chips, which are used in modern SSDs, are also being squeezed out of production.

TrendForce reports that contract demand for NAND Flash wafers spiked by up to 60% in November 2025, "fueled by AI applications and solid enterprise SSD orders." With such a focus on supplying enterprise and AI, it's leaving less space to produce chips for other consumers.

When will the RAM crisis end?

I'll preface this by saying that I have no idea when exactly the RAM (and impending SSD) crisis will end. According to some experts, it's only now just getting started.

Team Group's GM, Gerry Chen, has stated (via TechPowerUp) that December contract prices for DRAM increased by 80% to 100%, and that this substantial price hike is only the start of a "multiyear memory upcycle." Chen believes the situation will worsen in early 2026 once the current stock purchased at a reasonable price is sold off.

Assuming the AI bubble and its unprecedented demand for high-performance DRAM and NAND chips don't pop at some point in the near future, new fabrications will need to be created. The problem? These plants cost billions of dollars and take years to get up and running.

As far as I know, Micron — the company that recently exited the consumer business — is the only big supplier to state its intentions of opening a new DRAM fabrication in the near-ish future (via PCGamer). It has invested $10 billion in the project that will see the fab built in Japan, but it's not expected to begin actually creating any chips until the second half of 2028.

The other resolution to the problem involves the AI bubble popping (or at least deflating a bit). Should that happen, the AI datacenter buildout will likely come to an abrupt halt, leaving an oversupply of DRAM and NAND to contend with.

The AI bubble's deflation would, of course, have massive ramifications on global markets, but at least we'd be able to once again buy DDR5 memory at a reasonable price.

RAM crisis: FAQ

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