The world is running into a memory shortage and artificial intelligence is the reason.

The rapid expansion of AI cloud computing and hyperscale data centers has triggered an unprecedented surge in demand for memory chips. Supplies can no longer keep up, and the imbalance is starting to ripple through the entire technology ecosystem. Analysts warn that higher component costs will soon show up in the prices of everyday devices, from smartphones and laptops to game consoles.

“If you want a device, buy it now,” said Avril Wu, senior research vice president at TrendForce, a Taiwan based consultancy that tracks global component markets. “Prices are moving fast, and they are not coming back down anytime soon.”

Why memory matters so much

The chips at the center of the shortage are RAM chips, short for random access memory. They are essential for performance, allowing devices to run multiple applications smoothly, keep browser tabs open, and stream video without stuttering.

According to TrendForce data, global demand for RAM already exceeds supply by roughly 10 percent, and the gap is widening. Manufacturers are paying significantly more each quarter just to secure enough chips.

Wu says that in the current quarter alone, buyers are paying about 50 percent more than in the previous quarter for standard DRAM, or dynamic random access memory. Companies that want guaranteed or faster delivery are paying two to three times the previous prices. Looking ahead, she expects DRAM prices to rise another 40 percent next quarter and remain elevated throughout 2026.

AI is consuming memory at scale

The core driver behind the shortage is AI infrastructure. Modern AI systems rely on powerful GPUs paired with massive pools of high speed memory to train and run models efficiently.

“AI workloads are fundamentally built around memory,” said Sanchit Vir Gogia, CEO of Greyhound Research. “Training and inference require large, persistent memory capacity, extreme bandwidth, and close proximity to compute. If you cut memory, performance collapses.”

At the same time, AI companies are spending billions of dollars to build data centers at record speed across the globe. This is not a short term cycle, analysts say, but a structural shift in demand.

“AI has permanently changed how memory is consumed,” Gogia added.

Fewer chips for consumer devices

One clear winner from the shortage so far is Micron Technology, one of the world’s largest producers of RAM. The company recently reported better than expected earnings, driven by higher memory prices.

CEO Sanjay Mehrotra said the outlook remains strong as AI adoption accelerates. He noted that industry wide supply is likely to stay well below demand for the foreseeable future.

To chase higher margins, memory manufacturers have prioritized advanced, AI focused products. That shift leaves fewer chips available for traditional markets such as PCs, smartphones, gaming consoles, and consumer electronics like televisions.

The impact is already being felt. On a recent earnings call, Dell Technologies Chief Operating Officer Jeff Clarke acknowledged rising component costs, warning that it would be difficult to prevent those increases from reaching customers.

No quick fix in sight

Analysts agree there is no near term solution. Existing fabrication plants are running close to maximum capacity, and expanding output takes years, not months.

By the end of 2026, Wu says most major memory makers will have pushed their current facilities as far as they can go. The next major increase in capacity is expected from a new Micron factory in Idaho, which the company says will not become operational until 2027.

Until then, suppliers are likely to keep raising prices.

“For the next few years, memory will remain a bottleneck,” Wu said. “And when memory is scarce, everything that depends on it gets more expensive.”

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