Artificial intelligence spending is fueling a global memory chip shortage, pushing up prices for laptops, smartphones, gaming consoles, and other consumer electronics. Manufacturers are prioritizing high-bandwidth memory (HBM) for AI data centers, leaving fewer conventional DRAM chips for everyday devices.
The supply squeeze, nicknamed “RAMaggedon,” has caused RAM prices to surge. In Hong Kong, computer shop manager Ken Tam reports that 16 GB of RAM now costs about HK$1,500, up from HK$300–HK$400 previously. Business has fallen by half since September as customers balk at the higher costs.
Analysts note that memory prices for PCs and smartphones have climbed five to six times year-over-year. Samsung Electronics, SK hynix, and Micron have benefited from strong HBM demand, but the production shift has reduced supplies of standard DRAM used in consumer devices.
The shortage is altering buying behavior. Some users are upgrading older computers instead of buying new ones. In Tokyo, graphic designer Charles Brousse says RAM, graphics cards, and motherboards have reached “ridiculous levels,” forcing his custom computer service to ask clients to supply their own parts.
Higher component costs are also hitting game consoles. Reports indicate price increases for Sony PlayStation and Microsoft Xbox products. Software prices are rising as companies bundle AI tools—Microsoft 365 saw a sharp price hike in February following heavy AI investment.
AI data centers add further inflationary pressure by consuming large amounts of electricity and water. The U.S. now hosts over 4,600 active data centers. Economists warn that data centers can raise wholesale electricity prices, contributing to a 4% rise in residential electricity costs (inflation-adjusted). Moody’s Analytics chief economist Mark Zandi estimates that AI-related inflation costs households “just over $375 more” per year.
Automakers are also feeling the pinch, with higher costs for in-vehicle computer systems. Samsung’s finance chief expects the shortage to deepen in 2027 and persist through 2028.