What the New Memory Crisis Means
The current memory crisis is a severe supply squeeze in DRAM and NAND flash that is driving record-high prices for RAM and SSDs while AI servers compete directly with consumer PCs for limited capacity. Over recent quarters, commodity DRAM and NAND flash prices have surged, with May setting fresh records and only a slight slowdown expected in June. Market data shows PC-use DDR4 8Gb commodity parts reaching USD 20 (approx. RM92) in May, up from USD 16 (approx. RM74) in April, while commodity NAND multi-level cell 128Gb products used in memory cards and USB sticks climbed to USD 26.51 (approx. RM122). At the same time, manufacturers warn that demand from AI infrastructure and servers is locking in much of the output planned for the coming years, leaving fewer chips available for everyday PC upgrades and gaming systems.
Record DRAM and NAND Flash Prices: How High Have They Gone?
Commodity DRAM prices are setting records and driving the headline story of DRAM prices rising across the PC ecosystem. According to DRAMeXchange, average PC-use DDR4 8Gb prices hit USD 20 (approx. RM92) in May, up 25% from USD 16 (approx. RM74) in April, marking the highest level since tracking began. TrendForce notes that PC DRAM contract prices are up 40% to 50% quarter-on-quarter after soaring 100% to 115% in the previous quarter, highlighting the scale of the RAM cost surge. NAND flash prices are following a similar pattern. Average prices for 128Gb commodity MLC NAND rose 9.73% month-on-month in May to USD 26.51 (approx. RM122) and have now climbed for 17 straight months, with cumulative increases around 280% since early last year. This sustained SSD price increase is starting to filter through to retail SSDs and external storage.
AI Servers Are Consuming the Memory Supply
The root of the memory crisis lies in demand from AI servers and accelerators, which now compete head-on with consumer PCs for DRAM and NAND flash. Team Group CEO Gerry Chen says AI-related workloads already consume around 40% to 50% of the entire memory market, covering both DRAM for RAM modules and NAND flash for SSD storage. According to Team Group, most memory production planned for 2026 and 2027 is already sold, and supply may not normalize until at least 2028. In parallel, the rush to secure HBM and DRAM for AI GPUs has created a tight market where some memory prices have jumped by as much as 414%, while PC makers have faced 110% higher memory costs when locking in supply. Edge AI, smart manufacturing and communications gear are also lifting demand for SLC NAND, adding more strain on overall flash availability.
How OEMs Like Dell Are Absorbing the Shock
For large OEMs, the memory crunch is already visible in financial guidance and product pricing. Investment bank UBS notes that Dell has so far managed sharp DRAM and NAND flash cost increases, even as its AI server revenue jumped 757% and helped drive an 88% rise in overall quarterly revenue. UBS warns, however, that “the impact of the rising costs are expected to be more severe in the second half of calendar 2026 into the first calendar quarter of calendar 2027.” PC manufacturers have had to cope with memory prices that are 110% higher than before as they secure components in a tight market, while UBS does not expect a meaningful decline in DRAM or NAND prices after early 2027. Dell’s COO has already said the firm is repeatedly repricing systems because component costs, including DRAM and NAND, are climbing in a fast-changing inflationary environment.
What PC Builders and Upgraders Should Do Now
For PC builders and upgraders, the memory crisis 2025 era means changing buying habits. With DRAM prices rising, NAND flash prices at record levels, and forecasts pointing to elevated costs until at least 2028, waiting for a big correction in RAM or SSD prices may not pay off. Instead, plan builds around realistic capacities, prioritizing enough RAM and SSD space for your workload without chasing excess headroom. Lock in upgrades when you see stable pricing for several weeks rather than speculating on short-term dips, especially as contract prices are still up 40% to 50% quarter-on-quarter. Consider reusing existing DDR5 or SSDs where possible and focus new spending on components less affected by the RAM cost surge. For storage-heavy builds, mixing a smaller high-speed SSD with existing drives can blunt the SSD price increase while keeping systems responsive.