Mem-ageddon: AI chip frenzy to wallop DRAM prices with 70% hike

Steven

Mem-ageddon: AI chip frenzy to wallop DRAM prices with 70% hike

Summary

Samsung, SK hynix and Micron are shifting advanced wafer capacity towards high‑margin server DRAM and HBM for AI infrastructure, squeezing supply for consumer PCs and smartphones. Korea Economic Daily reports Samsung and SK hynix plan to raise server memory prices by up to 70% in Q1 2026; combined with roughly 50% increases in 2025 this could nearly double prices by mid‑2026. Market watchers TrendForce and IDC report inventories falling, shipment growth hinged on wafer output, and supply growth that lags demand. Analysts have raised earnings forecasts for the big memory firms, while economists warn the memory squeeze could add to broader inflationary pressures.

Key Points

  • Major memory vendors are prioritising server DRAM/HBM for AI workloads, reducing capacity for consumer devices.
  • Samsung and SK hynix reportedly planning up to a 70% price hike for server memory in Q1 2026.
  • When combined with 2025 rises, DRAM prices could almost double by mid‑2026.
  • TrendForce reports conventional DRAM jumped 55–60% in a single quarter; server DRAM supply remains tight.
  • IDC warns the shortage is unprecedented and may have knock‑on effects into 2027.
  • Micron, Samsung and SK hynix have seen huge share and profit gains as investors price in tighter supply.
  • Economists caution that AI infrastructure spending could feed broader inflation via hardware cost rises.

Why should I read this?

Short and blunt: if you buy hardware, manage IT budgets or run datacentres, this matters — your next PC, phone or server refresh could cost a lot more. It explains who’s hoovering up memory, why prices are spiking now and why the squeeze might last.

Author’s take

Punchy: This looks less like a cyclical blip and more like a structural realignment. Chipmakers are chasing fat margins from AI servers; that changes wafer allocation and leaves everyone else paying the price. If budgets or inflation are on your radar, read the detail.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/01/06/memory_firm_profits_up_as/