The surge in random-access memory (RAM) prices has been noticeable across various electronic devices, such as computers, cellphones, and even certain car features. Memory manufacturers have shifted their focus from consumer products to supplying artificial intelligence (AI) companies. This shift is driven by the increasing demand for memory in data centers supporting AI operations.
Mark Chen, a store manager at Uniway Computers in Calgary, highlighted the significant price increase in RAM kits over a short period. The price of a 32GB DDR5 memory kit has more than doubled in recent months, making it challenging to find one for less than $400 now.
Micron Technology Inc., one of the major RAM manufacturers globally, announced its decision to retire its consumer-focused brand Crucial. Instead, the company aims to cater to the growing needs of AI data centers, where higher profits can be made.
The global memory shortage is fueled by the AI boom, with companies like OpenAI, Meta, and Google rapidly expanding their data centers. These centers require large amounts of high-bandwidth memory to handle the heavy workload of AI applications. The demand for memory components is intensifying, prompting manufacturers like Micron, Samsung, and SK Hynix to prioritize AI-related chip production.
The shortage is impacting various sectors, with the personal computer (PC) market being the first to feel the effects. Consumers are experiencing price hikes in memory components, solid-state drives, and may soon face similar challenges with video cards due to their RAM usage.
As investors speculate on the sustainability of the AI industry, there is uncertainty about how long the high memory prices will persist. The shift in focus by memory manufacturers towards AI clientele is expected to exacerbate the situation, potentially leading to reduced memory configurations in PCs or fewer promotional offers.
Consumers are advised to consider postponing upgrades if possible, as the duration of the price surge remains uncertain. While products like cellphones may not immediately reflect the price increase due to pre-secured contracts for RAM components, the overall impact of the memory shortage is likely to be significant in the coming months.
