AI chip frenzy to wallop DRAM prices with 70% hike

"Memory prices are set to spike again as chipmakers prioritize AI server production over consumer devices, with analysts warning of a high double-digit jump in Q1 2026 alone as demand outpaces supply. Samsung Electronics and SK hynix are reportedly planning to raise server memory prices by up to 70 percent this quarter, according to Korea Economic Daily. Combined with 50 percent increases in 2025, this could nearly double prices by mid-2026."

"The memory market is at an inflexion point, with demand materially outpacing supply, IDC stated, claiming that while the memory industry has long been characterized by boom-and-bust cycles, this one is different. This crunch stems from AI's voracious appetite for memory - hyperscalers like Microsoft, Google, and Amazon are driving demand that's permanently reshaping silicon wafer allocation away from consumer products (phones and PCs)."

"The two Korean giants, alongside US-based Micron, dominate global memory production. All three are reallocating advanced manufacturing capacity to high-margin server DRAM and HBM chips for AI infrastructure, squeezing supply for PCs and smartphones. Financial analysts have raised their earnings forecasts for the firms in response, as they look to benefit from the AI infrastructure boom that is driving up prices for everyone else. Taiwan-based market watcher TrendForce reports that conventional DRAM prices already jumped 55-60 percent in a single quarter."

Memory prices are rising sharply as Samsung, SK hynix, and Micron shift advanced capacity toward high-margin server DRAM and HBM for AI infrastructure. Samsung and SK hynix plan server memory price hikes up to 70% this quarter, which combined with 2025 increases could almost double prices by mid-2026. TrendForce reports conventional DRAM jumped 55–60% in one quarter and forecasts server DRAM will rise over 60% in Q1 2026. Supplier inventories are tightening and shipment growth depends on increased wafer output. IDC warns the shortage may persist into 2027 as hyperscaler demand reshapes wafer allocation away from consumer products.

Read at Theregister