As memory shortage persists, vendor price quotes are not long remembered
Summary
Soaring demand for memory driven by large AI projects has tightened global supply and pushed prices sharply higher. Analysts at IDC told The Register that memory pricing for many products has nearly doubled compared with a few months ago, prompting vendors to revise ordering and pricing terms to protect margins and manage constrained inventories.
Major vendors are already changing contract rules: Cisco can cancel compute orders up to 45 days before shipment and may adjust pricing between order and delivery; HPE has halved quote validity to 14 days (with some exemptions) and can adjust prices up to shipment date for certain orders. IDC expects prices to moderate later in the year but warns that sustained AI spending will keep demand strong.
Key Points
- Memory prices have surged — IDC says pricing for many memory products has nearly doubled in recent months.
- Vendors are shortening quote validity and adding rights to cancel or reprice orders (Cisco: cancellations up to 45 days before shipment; HPE: quote window cut from 30 to 14 days for many customers).
- Supply is being allocated to customers able to accept higher prices; this limits availability for others and complicates procurement negotiations.
- Cloud providers’ expanded 2026 capex for AI (AWS, Google, Meta, Microsoft collectively signalling very large spends) is a primary demand driver.
- IDC expects some price moderation later in 2026, but persistent AI demand and constrained supply could keep pressure on memory markets.
Why should I read this?
Bottom line: if you’re buying servers, PCs or storage, quotes can disappear or change fast. This isn’t just annoying paperwork — it can blow budgets, delay projects and force rushed decisions. Read this to save yourself from surprise price hikes and to know why vendors are suddenly so cagey about quotes.
Author’s take (punchy)
This matters now: procurement teams, IT buyers and channel partners need to act quicker, check Ts&Cs and build contingency plans. The days of fixed, reliable quotes for memory-heavy kit are over for the foreseeable future.
Context and relevance
The story links into broader trends: AI infrastructure is shifting demand patterns for semiconductors and memory, affecting consumer PCs through to hyperscale data centres. Organisations should expect higher capital costs, tighter lead times and more aggressive vendor contract terms. For budgeting and supply-chain planning, treat memory as a volatile commodity in 2026 and beyond — especially while major cloud players continue heavy AI investment.