AI's memory squeeze: DRAM prices triple as PC and phone costs climb
Merchants in Shenzhen's Huaqiangbei market say memory module prices have risen more than 300% in a year, with 16GB DDR5 kits going from just over 200 yuan at their cheapest to 1,400 yuan or more, and 16GB DDR4 from about 100 yuan to over 600 yuan. The piece argues that AI servers need 8–10 times as much memory as standard servers, that roughly 70% of advanced memory capacity is being consumed by AI, and that Samsung, SK Hynix and Micron keep shifting output to higher-margin HBM, structurally shrinking general-purpose DRAM supply. It also notes DRAM die costs rose only about 30% while end prices climbed 200–300%, attributing part of the gap to channel stockpiling and AI-themed speculation; phone and PC makers have raised prices, and Gartner expects average PC prices to rise 17% by the end of 2026, with sub-$500 entry-level PCs possibly disappearing by 2028.
The buildout of AI infrastructure is passing part of its cost to consumers through memory prices, even those who never use AI.